Rule 4: Prohibited Strategies & Fair Play

Funded7 maintains a Zero Tolerance Policy for strategies that exploit system mechanics rather than trading the market. Violating Rule 4 results in Immediate Termination and Profit Forfeiture.

Prohibited Conduct 1: Martingale Strategies

While “layering” or “averaging down” is not inherently prohibited, we strictly forbid Martingale Strategies, the practice of geometrically increasing position sizes to recover losses. This is classified as gambling behavior that leads to inevitable ruin.

❌ Banned (Martingale)

Intentionally increasing the lot size when the price moves against you.

Example (Gold Buy):

  • Entry: 1.0 lot @ 2100
  • Price drops to 2095: Buy 1.5 lots
  • Price drops to 2090: Buy 2.0 lots

Verdict: BANNED. This is gambling, not trading.

✅ Allowed (Averaging)

Adding positions with fixed (or decreasing) lot sizes.

Example (Gold Buy):

  • Entry: 1.0 lot @ 2100
  • Price drops to 2090: Buy 1.0 lot
  • Price drops to 2065: Buy 1.0 lot

Verdict: SAFE. As long as the total risk fits Rule 2 limits, this is allowed.

Prohibited Conduct 2: System & Infrastructure Exploitation

Any activity that seeks to exploit technical gaps rather than analyzing market data is strictly prohibited.

  • Arbitrage:

    • Latency Arbitrage: Exploiting feed delays to place orders before the platform price updates.

    • Hedge Arbitrage: Colluding with separate accounts (within Funded7 or with other firms) to hold simultaneous “Buy” and “Sell” positions to extract evaluation gains or bonuses.

  • Tick Scalping:

    • Hyper-fast trading targeting price errors or “quote stuffing” rather than normal price formation.

    • Note: Even if a strategy does not trigger the time-duration limits in Rule 3, it may still be terminated if the intent is identified as Tick Scalping.

Prohibited Conduct 3: Third-Party Use & Group Trading

Funded7 accounts are provided solely to evaluate the skills of the contract holder (you). Any conduct contrary to this intent is prohibited.

  • Prohibition of Account Sharing: You may not share passwords or allow third parties to trade on your behalf. Detection via IP addresses, device IDs, or behavioral patterns will lead to immediate disqualification.

  • Prohibition of Group Trading: Coordinated trading where multiple accounts execute identical positions in the same currency pairs at the same time (including copy trading) is strictly forbidden.

  • Prohibition of Copy Trading & External Signals: Any form of copy trading that contradicts the purpose of “evaluating your own skill” is prohibited. This includes:

    • Use of signal services, copy-trade platforms, or “ready-made EAs” that result in identical entries for all users.

    • Copying positions between multiple Funded7 Challenge accounts or Pro accounts.

    • Even if using your own EA, if the results show a high correlation with other traders, it will be deemed Group Trading and lead to disqualification.

Our risk team utilizes advanced monitoring tools to audit all activities 24/7. Any attempt to bypass these rules will be detected.