prohibited strategies

Prohibited Strategies

Mockapital’s evaluation model is designed to identify traders who can demonstrate real skill, risk control, consistency, and independent decision-making in a simulated trading environment.

Any strategy that exploits platform conditions, technical delays, account structures, evaluation rules, promotions, or third-party systems rather than genuine trading ability is prohibited.

If Mockapital determines that a trader has used any prohibited, abusive, manipulative, suspicious, or high-risk strategy, Mockapital may deduct affected trades, adjust account results, reject payout eligibility, reduce leverage, impose additional restrictions, suspend the account, terminate the account, or close any related accounts.

1. Latency Arbitrage

Latency arbitrage involves exploiting delays between price feeds to gain quick, risk-free profits. For example, if EURUSD moves to 1.10020 on a fast broker but Mockapital’s feed still shows 1.10000, a trader may buy instantly and exit for a 2-pip profit as the price catches up.

This relies on feed lag, not real analysis. It is prohibited at Mockapital because it creates unfair advantages, distorts performance metrics, and does not reflect genuine trading skill.

2. High-Frequency Trading (HFT)

High-Frequency Trading uses ultra-fast bots or systems to place large volumes of trades within very short timeframes, often targeting tiny price movements with little or no market logic.

At Mockapital, HFT is prohibited because it is not scalable, can stress platform systems, creates artificial performance, and does not demonstrate genuine trading ability. Fast trading may be allowed if it is based on clear market analysis and reasonable execution, but automated tick-based trading without strategy logic is not permitted.

3. Grid Trading

Grid trading opens buy and sell orders at fixed intervals to profit from price fluctuations without clear directional analysis. For example, a trader may place multiple buy orders below price and sell orders above price, hoping the market moves back and forth.

This method often hides risk behind floating drawdown and can lead to sudden large losses during trending markets. Grid trading is prohibited because it does not reflect controlled risk management or genuine market decision-making.

4. Martingale

Martingale strategies involve increasing position size after losses to recover previous losses with one winning trade. For example, a trader may start with 0.5 lots and increase to 1 lot, 2 lots, 4 lots, and beyond after each loss.

This creates exponential risk and can quickly lead to account failure. Mockapital allows responsible scaling based on valid trade setups, but reckless position doubling or recovery-based trading is strictly prohibited.

5. Gap Trading

Gap trading means holding trades through weekends or market closures to profit from price jumps caused by news, events, or market reopening gaps. Since stop losses may not execute normally during closures, this creates unmanaged risk.

Weekend holding or market closure exposure is prohibited unless the trader has purchased and is compliant with the applicable News Trading and Weekend Holding add-on. Even where weekend holding is allowed, intentional gap exploitation or unmanaged risk may still be reviewed and may lead to disqualification.

6. Reverse Arbitrage

Reverse arbitrage involves watching one price feed and entering trades on another slower feed before it updates. For example, if a fast broker shows EURUSD moving higher while Mockapital’s feed has not yet reflected the move, the trader enters before the delayed feed catches up.

This is based on feed delay, not real trading analysis. Reverse arbitrage is prohibited because it manipulates platform timing and undermines fair evaluation.

7. Server Latency Abuse

Server latency abuse occurs when traders exploit delays between the trading terminal, platform, and server. This may involve tools, bots, VPS setups, or technical methods designed to gain an advantage from execution delays rather than trading decisions.

At Mockapital, execution must be based on market setups and trader judgment. Any attempt to benefit from server delay, infrastructure manipulation, or technical loopholes is prohibited.

8. Server Spamming

Server spamming involves placing, modifying, or cancelling excessive orders to overload or manipulate the platform. For example, a bot may place and cancel multiple orders every tick to stress the server or distort execution.

This behaviour is prohibited. Mockapital allows normal order management, but excessive order activity designed to test, stress, or manipulate platform systems may result in disqualification.

9. Copy Trading

Copy trading involves duplicating another trader’s actions through software, APIs, trade copiers, signal tools, or manual copying. While the results may appear strong, they do not reflect the trader’s own independent decision-making.

Mockapital evaluates individual skill. Automated copying is strictly prohibited, and manual signal-following must still show clear personal analysis, timing, and decision-making.

10. Account Mirroring

Account mirroring means duplicating the same or highly similar trades across multiple accounts, firms, platforms, or user profiles, either manually or through software.

Each Mockapital account must reflect independent decisions and a unique trading approach. Mirroring trades from another account, trader, platform, or prop firm is prohibited.

11. Long-Short Arbitrage

Long-short arbitrage occurs when a trader opens opposing positions across different accounts or firms to remove risk. For example, buying EURUSD on one account while selling EURUSD on another account creates a situation where one side may profit regardless of direction.

This undermines the purpose of the evaluation model, which is to assess risk management, directional decision-making, and trading skill. Long-short arbitrage is strictly prohibited.

12. Synthetic Hedging

Synthetic hedging uses correlated instruments to offset risk without directly hedging the same asset. For example, a trader may buy gold and short silver, or buy EURUSD and short GBPUSD, to create hidden exposure.

Mockapital expects traders to manage risk transparently. If synthetic pair trading is used to hide drawdown, reduce real exposure, or manipulate evaluation results, it may be treated as a prohibited strategy.

13. Standard Hedging

Standard hedging means opening both buy and sell positions on the same instrument to freeze exposure instead of managing the trade properly.

This prevents accurate risk assessment and may distort account performance. Traders are expected to manage risk by closing, reducing, or properly adjusting positions, not by locking exposure through hedging.

14. Toxic Trading Flow / Gambling

Toxic trading flow includes reckless, emotional, or unstructured trading with no clear setup, risk plan, or consistency. This may include revenge trading, impulsive lot increases, repeated oversized positions, or trading without meaningful risk control.

Mockapital looks for structured and repeatable trading behaviour. Gambling-style trading may lead to review, payout rejection, or account termination, even if the account is temporarily profitable.

15. Overleveraging / YOLO Trades

Overleveraging means taking excessive risk on a single trade or small number of trades in an attempt to quickly pass a challenge or reach a payout target.

This behaviour does not demonstrate sustainable trading skill. Mockapital may review or disqualify accounts where profit is generated through oversized, reckless, or all-or-nothing trading behaviour.

16. Use of Commercial, Public, or Automated EAs

Use of commercial, public, third-party, rented, purchased, or widely available Expert Advisors is not allowed unless expressly approved by Mockapital in writing.

Automated systems that exploit demo conditions, use grid or martingale logic, duplicate trades across accounts, or remove trader discretion are prohibited. Mockapital may reject any automated strategy that creates copied patterns, abusive execution, or performance that does not reflect the trader’s own skill.

17. Trading Based on Telegram Signals or Paid Groups

Following trades from Telegram, Discord, paid signal groups, private groups, or third-party trade providers is prohibited where the trader is simply copying instructions without independent analysis.

Learning from educational material is allowed, but trades must be based on the trader’s own decision-making. If a trader cannot reasonably explain their entries, exits, timing, and risk, the account may be flagged for review.

18. Account Passing or Selling

Giving another person access to your account, hiring someone to pass a challenge, selling an account, buying an account, or allowing a third party to trade on your behalf is strictly prohibited.

Mockapital may review IPs, devices, trading behaviour, timing, and account activity to detect account passing or third-party management. If the registered user did not personally trade the account, results may be invalidated and payouts may be denied.

19. Strategy Inconsistency

Mockapital may review accounts where trading behaviour changes materially after evaluation, including sudden changes in lot size, holding time, risk per trade, instrument selection, trade frequency, or strategy type.

Reasonable strategy development is allowed. However, material changes that suggest account passing, hidden copying, gambling, or misrepresentation may result in review, payout rejection, or disqualification.

20. Churning and Promo Abuse

Churning and promo abuse involve buying multiple discounted challenges, repeatedly gambling through accounts, coupon stacking, or using promotions in a way that abuses the purpose of the offer.

Mockapital promotions are intended to support genuine traders. Repeated mass attempts, duplicate profiles, or abusive use of discounts may lead to account restrictions, cancellation of promotional benefits, or disqualification.

21. Exploiting System Glitches

Trading during technical issues such as frozen candles, delayed quotes, incorrect prices, execution errors, dashboard bugs, or platform malfunctions is prohibited if the trader attempts to benefit from the issue.

If a trader notices a technical issue, they should report it and avoid exploiting it. Profits generated from glitches, pricing errors, or technical faults may be removed, and repeated abuse may lead to termination.

22. One-Sided Betting

One-sided betting involves placing repeated buy-only or sell-only trades without clear setups, risk management, or market logic. Directional bias is allowed when supported by analysis, but blind exposure in one direction is not considered a valid strategy.

Mockapital may review accounts where trading appears to be random, reckless, or based on directional gambling rather than structured decision-making.

23. Long-Term Holding and Passive Positioning

Mockapital accounts are designed for active trading, not passive investing or long-term holding without management. Leaving positions open for extended periods without active risk management does not align with the evaluation model.

Long-term holding, passive positioning, or unmanaged exposure may result in review, payout denial, or disqualification.

24. Coordinated Group Trading

Coordinated group trading involves multiple traders placing the same or highly similar trades across different Mockapital accounts, whether manually or through signals, shared trade plans, bots, private groups, or copy systems.

Mockapital requires each account to reflect independent decision-making. Coordinated trading may lead to payout denial, account termination, or closure of related accounts.

25. VPN, VPS, Remote Access, and Identity Masking Abuse

Use of VPNs, VPS setups, remote access tools, or masked connections to hide identity, location, account ownership, or third-party account management is prohibited.

VPS use may be allowed for connection stability, but it must not be used to disguise control of the account, bypass compliance checks, avoid detection, or enable another person to trade the account.

26. Manipulation of Evaluation Requirements

Traders must not manipulate program requirements by placing meaningless, ultra-low-risk, duplicate, artificial, or non-genuine trades simply to satisfy minimum trading days, payout conditions, or activity requirements.

Trades should reflect genuine trading activity and risk-managed decision-making. Attempts to technically meet requirements without real trading intent may result in review or disqualification.

27. Final Decision and Review Rights

Mockapital reserves the right to review any account for prohibited activity, suspicious trading, risk abuse, platform abuse, identity concerns, payment issues, or breach of program rules.

Where necessary, Mockapital may request explanations, documents, interviews, or additional verification before approving account progression or payouts. Failure to cooperate with a review may result in payout rejection, account suspension, or termination.

This policy should be read together with Mockapital’s Terms and Conditions, program rules, trading rules, FAQs, and any rules published on the Mockapital website or dashboard.