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Prohibited trading strategies

Which trading strategies are not allowed on CFD and Futures accounts, including hedging, automation, copy trading, microscalping and martingale.

Applies to: CFD and Futures. Some rules, such as hedging and automated trading, are different for each product.

Short answer

Trade the way you would on a live account. Any strategy that exploits the simulated environment, platform errors or our risk rules is prohibited. Breaking these rules can lead to profits being removed, payouts being denied or your account being closed.

Prohibited on both CFD and Futures

  • Exploiting platform or server errors, or trading on delayed data feeds or charts

  • Any strategy designed to exploit demo or simulated conditions, such as the absence of slippage

  • Hedging between separate accounts, whether they belong to you or to someone else

  • Coordinated trading with other people, such as placing identical or opposing trades across different accounts

  • Letting someone else trade your account

Hedging and automation at a glance

Rule

CFD

Futures

Hedging within one account

Allowed

Not allowed

Hedging across accounts

Not allowed

Not allowed

Fully automated trading (bots, AI)

HFT, tick scalping and arbitrage bots not allowed

Not allowed. Semi-automated trading is allowed only if you actively monitor and manage it.

CFD rules

Not allowed

  • Tick scalping, high-frequency trading and arbitrage bots

  • Reverse arbitrage, latency arbitrage and hedge arbitrage

  • Trade emulators

Gambling rule

Using more than 80% of your margin on open trades counts as "all or nothing" gambling. It can lead to payout rejection, profit removal or account termination.

Futures rules

Automated trading

  • Fully automated systems, AI and bots are not allowed on any account.

  • Semi-automated trading is allowed only if you actively monitor and manually manage your trades.

  • Automated ultra-high-frequency scalping is limited. Systems that place more than 200 trades a day are not allowed.

  • Hands-off, round-the-clock automated trading is not allowed.

Copy trading

Allowed, including with third-party copier software, but only between accounts you legally own. This includes your own Blue Guardian Futures accounts and your own external accounts. Copying other traders, signal providers or trade groups, or letting anyone trade for you, is not allowed.

Hedging

Not allowed. You can't hold opposing positions in the same or closely related instruments, in one account or across several, to offset risk or get around the rules.

Microscalping

Scalping is allowed. Microscalping is restricted: less than 50% of your total profit may come from trades held for under 10 seconds. This applies in both the evaluation and funded phases.

Martingale

Not allowed. You can't increase position sizes after losses to try to win back what you lost.

Order placement and market conduct

  • Placing multiple limit orders at the same price to manipulate fills is not allowed.

  • Exploiting isolated fills in gapped or illiquid markets is not allowed.

  • Using tight brackets to take advantage of the simulated market's lack of slippage is not allowed.

  • All trading must follow CME Group rules.

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