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Prohibited Trading Practices (HFT & Gambling Behavior)

Updated over 2 months ago

At Pipstone Capital, we are committed to promoting responsible risk management and professional trading behavior. These rules are applied to all of our challenges (1-Step, 2-Step and Instant)

The following practices are considered High-Frequency Trading (HFT), gambling behavior, or risk manipulation, and may result in account breach, payout denial, or account termination.

These practices are strictly discouraged.

1️⃣ Trades Under 60 Seconds (HFT)

Opening and closing trades in under 60 seconds is classified as High-Frequency Trading (HFT).

This type of trading focuses on rapid execution rather than proper market analysis and risk management, and is not permitted under our Responsible Trading Policy.

2️⃣ Drawdown Add-Ons (Recovery Trading - Hard breach)

Opening additional positions while an existing trade is in drawdown (loss) is considered recovery or gambling behavior.

You may open only one additional position at a better price level.
Opening multiple positions while trades are in loss is strictly prohibited.

This includes:

Increasing lot size while in drawdown

Repeatedly adding to losing trades

3️⃣ Stacking (Position Limits - Hard Breach)

Stacking refers to opening multiple positions in the same direction on the same instrument.

You may open a maximum of 4 concurrent positions per symbol-side, and only when trades are in profit.

Exceeding this limit is considered risk manipulation and may result in account breach.

4️⃣ Hedging (Not Allowed)

Opening simultaneous buy and sell positions on the same instrument is strictly prohibited.

Hedging artificially offsets risk and does not align with our funded trader model.

Any detected hedging activity will result in immediate review and potential account termination.

🚨 Important

Engaging in any of the above behaviors may result in:

Account breach

Payout rejection

Permanent account closure

We encourage all traders to focus on disciplined, structured, and risk-managed trading.

If you are unsure whether a strategy complies with our rules, please contact support before executing trades.

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