Home | What are the restricted or prohibited trading strategies at Falcon Funded?
Any form of cheating or exploitation of the Falcon Funded platform is strictly prohibited. Such practices violate our Terms of Service (TOS), which all traders accept when registering their account. Traders can prevent unintended consequences by carefully reviewing the guidelines below, as well as our complete TOS.
Trading styles that do not reflect actual marketing trading are considered Abuse of the System and are strictly prohibited; such activities will result in a breach of our TOS without warning.
High-Frequency Trading, or HFT, is a trading strategy that uses advanced high-speed technology and algorithms to execute a large volume of trades at extremely high speeds. HFT exploits miniscule price differences and market inefficiencies to generate short-term profits. HFT comes with significant risks and can create an unfair advantage for some traders.
Why High-Frequency Trading is prohibited on Falcon Funded:
Note: Warnings on Falcon Funded are cumulative. If a trader receives a warning for hyperactivity and proceeds to engage in HFT (or vice versa), it may result in a more severe penalty, including account suspension. In cases of extreme or repeated hyperactivity that causes significant strain on our services, the system may immediately suspend an account.
The Quick Strike Method is similar to HFT, but on a smaller scale. Traders using the Quick Strike Method exploit brief market movements by executing a high volume of trades, typically with a very short holding period. Like HFT, the Quick Strike Method carries inherent risks, including market manipulation.
Why the Quick Strike Method is prohibited on Falcon Funded:
Latency trading exploits differences in network speed or delays in trade execution to make profits. For example, using latency trading, a trader may receive market updates a few milliseconds earlier than other traders. They can exploit this advantage to make guaranteed profits. Latency trading relies on high-speed servers and other advanced technology.
Why latency trading is prohibited on Falcon Funded:
Latency trading is strictly prohibited at Falcon Funded because it violates fair trading practices. Using advanced technology that most traders don’t have access to, latency traders can contribute to market manipulation. These practices undermine the fairness and transparency that are key to healthy financial markets.
Hedging is the practice of placing opposite trades (buy and sell) on the same asset to mitigate risk. By opening both a buy and a sell on the same asset, one of the trades may gain even if the other one loses. At Falcon Funded, hedging is only allowed within the same account.
Group hedging refers to placing opposing trades on separate accounts.
Why group hedging is prohibited on Falcon Funded:
Hedging across multiple accounts can be used to bypass risk limits and manipulate trading rules. These limits are in place for the benefit of Falcon Funded and traders with Falcon Funded Accounts.
Arbitrage trading takes advantage of price discrepancies or time lags across markets and platforms to generate risk-free profits. Any form of arbitrage trading is strictly prohibited at Falcon Funded.
Why arbitrage trading is prohibited on Falcon Funded:
Similar to latency trading, arbitrage trading has the potential to manipulate prices and undermine fair trading practices. It can create inconsistencies in market pricing, and large-scale arbitrage trading can create artificial market fluctuations.
Tick scalping is a type of High-Frequency Trading (HFT) where traders make profits from very small price movements, or “ticks,” in short time frames using automated trading algorithms. Falcon Funded places limitations on tick scalping to help avoid market manipulation.
Why tick scalping is limited on Falcon Funded:
Tick scalping uses advanced technology to take advantage of miniscule price movements, often executing trades before other traders have a chance to act. This can create an unfair advantage, potentially undermining transparency in financial markets and leading to market manipulation.
With grid trading, a trader places multiple buy and sell orders at various price points above and below current prices. For example, a trader may place multiple buy orders at $100, $110, and $120, and multiple sell orders at $105, $115, and $125. Grid trading is prohibited at Falcon Funded.
Why grid trading is limited on Falcon Funded:
One-sided betting is the practice of taking positions in one direction (buying or selling) without proper analysis or risk management. This strategy involves continuous buys or sells of a particular asset without consideration of economic indicators, significant news events, or technical analysis.
News trading is allowed exclusively through our add-ons. For traders without the News Trading Add-On, we recommend waiting 4–5 minutes before and after major news events to allow the market to stabilize. This helps ensure more calculated decisions and better risk management.
At the moment, the News Trading Add-On is available only for Regular and Swing challenges. If you trade the news in a Knockout Challenge, your challenge will be failed upon reaching the revision stage.
NOTE: If there is evidence of system abuse, such as placing trades just before or after news events to bypass the 5-minute restriction, it will be considered a breach of the rules. This applies to NFP, High-Impact Events, and other restricted news trading periods.
Why one-sided betting is restricted on Falcon Funded:
With a lack of proper market analysis, one-sided betting carries the risk of substantial losses.
Account rolling is a tactic used in proprietary trading that relies on pure luck rather than genuine trading skill, and takes advantage of funded account challenges. Individuals using account rolling open multiple accounts to place high-risk trades without proper market analysis or a trading plan. They may use prohibited tactics to pass prop firm challenges. Although most of their prop firm challenges fail, they rely on pure luck to gain a few funded accounts.
Why account rolling is prohibited on Falcon Funded:
Account rolling is essentially gambling, and this tactic exploits funded account challenges. At Falcon Funded, we encourage traders to develop a proper trading plan, market analysis, and disciplined strategies to increase their chances of success and long-term profitability.
Falcon Funded Account holders are strictly prohibited from sharing or selling their accounts with other individuals or entities. Sharing devices with other traders is strictly prohibited, regardless of the relationship of the parties. We have a zero-tolerance policy for these activities.
Why account sharing or device sharing is prohibited on Falcon Funded:
Account sharing or device sharing violates our Terms of Service. It also undermines fairness, compliance, and security.
Hyperactivity refers to excessive trading activity, including frequent trading in a short time frame and frequent adjustments to orders. According to industry standards, an account is considered hyperactive if it surpasses 200 trades or 2,000 server messages in a single day. This includes modifications to orders, such as updating stop-loss. Hyperactivity is restricted on the Falcon Funded platform.
Why hyperactivity is restricted on Falcon Funded:
Excessive trading activity can strain the servers, resulting in delayed trade executions or even freezing the platform. This can negatively impact other traders. To ensure fairness and server reliability for all of our traders on Falcon Funded, hyperactivity is restricted.
Consequences of exceeding the limit for hyperactivity:
Note: Warnings on Falcon Funded are cumulative. If a trader receives a warning for hyperactivity and proceeds to engage in HFT (or vice versa), it may result in a more severe penalty, including account suspension. In cases of extreme or repeated hyperactivity that causes significant strain on our services, the system may immediately suspend an account.
In some cases, demo server errors may cause the platform to freeze or cause a delay in data updates. As with latency trading, some traders exploit the delay to execute trades with guaranteed profits. This activity is strictly prohibited on Falcon Funded.
Traders found to engage in such activity will be investigated and appropriate actions, including the revocation of access to our demo servers, may be taken. We encourage traders to promptly report server errors to our support team at Falcon Funded.
Why exploitation of platform or data freezing is restricted on Falcon Funded:
This behavior creates an unfair advantage, undermining the fairness and transparency that are essential to healthy financial markets. At Falcon Funded, we encourage ethical trading practices on a level playing field.
Copy Trading allows traders to engage in copying trades from another Falcon Funded Account, prop firm, or retail broker, provided that the accounts are owned by the same individual. This means that you can copy trades from any account(s) that you own.
However, Copy-Trading between multiple accounts not owned by the same individual or different IP Addresses, including those of relatives, family members, or friends, is strictly prohibited unless you purchase the EA’s Trading Add On
Gambling Won’t Sustain Long-Term investment
Gambling in trading is impulsive, chance-driven behavior without proper analysis or strategy. It
relies on luck rather than skill, involving reckless actions like overleveraging and random trades.
Unlike disciplined trading, gambling leads to unpredictable and unsustainable results. At
Falcon Funded, we emphasize professionalism, planning, and risk management over such
Behavior.
Trading behavior like taking the risk of the full or close to the daily loss limit on one or multiple
trade(s) running at a time is one kind of gambling. Such trading behavior is not considered a
genuine trading strategy and indicates a lack of proper risk management and It is considered
one kind of gambling and doesn’t sustain for a long time.
Gambling undermines discipline, risk management, and consistent performance, posing
financial risks to both traders and the firm. It violates the professional standards we uphold and
disrupts the goal of sustainable trading success.
To maintain integrity, based on traders’ activities, they may be subjected to various restrictions,
including but not limited to reduced leverage, imposing a 1% risk limit on all running trades of
your initial balance, and account termination. Our goal is to make these Gambling traders a
better trader and a better risk manager for a long time. If gambling continues after leverage
reduction or if the 1% risk limit rule is ignored at any time, our system can flag the account,
resulting in its termination and profit deduction of the violated trades.
Remember that professional traders typically risk 1% at a time or utilize 20% to 30% of their
total margin, or both yet they manage to earn substantial profits safely and sustainably over the
long term. We support skilled, responsible traders to ensure long-term growth. We are here to
assist you in becoming a better trader and to help you transform your life positively
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