Blue Guardian's Policies and Rules Concerning Scalping and Tick Scalping
On the Blue Guardian platform, scalping, and in particular, tick scalping, has specific rules and restrictions designed to maintain fair trading practices. Below you will find the definitions, prohibited activities, and guidelines to help you comply with Blue Guardian's trading policies.
What Is Scalping and Tick Scalping?
Scalping is a trading strategy involving short-term trades aimed at profiting from small price movements. Tick scalping is a subset of scalping focused on very short-term trades, typically closing within 2 minutes, often exploiting broker tick feeds to profit from minimal price changes. Definition of Tick Scalping: Tick scalping involves trades executed and closed in under 2 minutes. These practices are prohibited because Blue Guardian identifies them as unfair attempts to leverage the system. Such behavior may lead to account violations or permanent termination. Violation Explanation: Violations occur when trades are frequently closed within seconds to under 2 minutes. These repeated actions trigger a tick scalping flag and contravene the platform's trading policies.
Policies and Restrictions
Minimum Trade Duration
To ensure compliance, Blue Guardian enforces the following policy:
Minimum Holding Time: Trades closed under 2 minutes are identified as tick scalping.
Manual Trading: Closing trades manually within this timeframe also qualifies as a violation unless exceptions apply.
Automated Systems: Using automated systems for these trade durations further compounds the breach.
Permissible Practices
Scalping without breaching the 2-minute rule is allowed. Trades that consistently last longer are compliant with the rules.
How to Avoid Tick Scalping Violations
To stay within compliance and avoid unnecessary account flags or terminations, consider the following recommendations:
Hold Trades Longer: Maintain trade duration of more than 1-2 minutes.
Manage Trade Intervals: Avoid placing multiple orders within short intervals that close quickly. Group smaller trades into larger positions and allow for wider timeframes.
Be Cautious of TP/SL Settings: While trades closed via automatic Take Profit (TP) or Stop Loss (SL) settings can occasionally fall below 2 minutes, excessive reliance on these can still trigger compliance reviews.
Conclusion
To ensure your trading remains within Blue Guardian’s standards:
Keep trades open for at least 2 minutes on average.
Avoid high-frequency strategies or clustering multiple orders simultaneously within short timeframes.
Familiarize yourself with Blue Guardian's policies for clear compliance.
By following these guidelines, you can trade confidently on the platform without concerns about violations or account terminations.