In Martingale trading, you increase your investment after each loss. You hope that a successful trade will make up for the losses and give you a profit. This strategy is considered a form of gambling and is very risky. It can lead to large losses and even the complete loss of all invested money if there are many consecutive losses.

This trading strategy only works if you have unlimited simulated money (which you don't when trading with a firm). Trading firms set a maximum limit for how much money you can lose, and traders have to adjust their strategy to match this limit of risk.

Reverse trading is typically executed between two or more different firms. Please note that Smart Prop Trader communicates with other firms. Therefore, if reverse trading from the same trader is detected across 2 or more different firms, Smart Prop Trader reserves the right to shut down the trader's account and ban the trader from future use of Smart Prop Trader's services.

High-Frequency Trading (HFT) involves employing sophisticated computer algorithms and high-speed telecommunication networks to execute a multitude of trades typically within a minute or less.

The prohibition of High-Frequency Trading (HFT) is in place due to its potential for market manipulation, unfair advantages, and the ability to induce market instability.

Grid Trading is a trading approach where opposing buy and sell orders for the same instrument are strategically placed to achieve equivalent or similar risk. This strategy carries the risks of market manipulation, excessive leveraging, market instability, and the potential for a risk-free simulated profit.

Latency Arbitrage Trading involves employing a data stream intentionally designed to have a delay or lag in providing market data, such as stock prices or trading volumes. This grants an unjust advantage to the trader compared to others who must rely on real-time market data.

Employing Latency Arbitrage is deemed unethical and runs contrary to the ways in which legitimate financial markets function.

While Latency Arbitrage Trading is one of the most frequented methodologies utilized to exploit demo environments, it's not the only way traders can exploit a demo environment in order to make unethical gains that wouldn't otherwise be possible within legitimate financial markets. That is, traders can also take advantage of glitches that arise within a demo environment rather than reporting the glitch taking place.

For example, if the demo feed suddenly stops at 2:00 price while at the same time allowing a trader to place trades locked in at the 2:00 price and consistently clicks back to where the feed should be 5 min later, if the trader looks at the other charts that don't contain a bug and places a trade on that exact 5 min window to exploit the glitch (as opposed to reporting the bug), this type of behavior would also be deemed a general exploitation of a demo environment.

Moreover, general exploitation of a demo environment violates our Terms & Conditions and will result in a trader's account being canceled as well as banning that trader from future use of Smart Prop Trader's services.

Traders are prohibited from sharing accounts or transferring Simulated Funded Accounts from one owner to another for any purpose.

Engaging in account sharing and selling accounts is strictly forbidden and will promptly lead to a violation of your account(s), resulting in a ban from our services.