Prohibited Trading Practices

At GenzProp, we aim to identify and reward disciplined traders who demonstrate genuine market edge, solid risk management, and long-term consistency. To maintain a fair and realistic simulated environment, strategies designed to exploit platform mechanics, data lag, or system vulnerabilities are strictly forbidden.

Engaging in any of the following prohibited behaviours across any account phase (Evaluation or Qualified) may lead to immediate account termination and forfeiture of simulated rewards without prior notice.

1. Reverse Arbitrage

What it means: exploiting artificial price discrepancies caused by platform connectivity lag, bridge delays, or server desynchronization, rather than trading true market inefficiencies.

Example: a trader notices that Price Feed A lags behind Price Feed B by 500 milliseconds during high volatility. They place orders on GenzProp solely to capture the stale price before the feed catches up, carrying zero real market risk.

2. Hedging Between Accounts

What it means: opening opposing buy and sell positions on the same financial asset across two or more accounts owned by the same trader or coordinated among a group of traders.

Example: you buy 10 lots of EUR/USD on Account A and simultaneously sell 10 lots of EUR/USD on Account B before a major news event. One account is certain to fail while the other passes the evaluation, bypassing genuine risk control.

3. Tick Scalping

What it means: entering and exiting positions within seconds to scalp fractions of a pip off platform latency or quote flickers.

Rule threshold: closing 3 or more trades held for less than 10 seconds within a 1-hour window constitutes an immediate hard breach.

Example: opening a trade on XAU/USD and closing it 4 seconds later for a 2-pip gain, then repeating this pattern multiple times within minutes.

4. Abusive Autotrading

What it means: using Expert Advisors (EAs), bots, or algorithms engineered specifically to exploit server latency, queue delays, or platform glitches rather than executing legitimate technical or fundamental strategies.

Example: deploying a high-frequency trading bot designed to flood the trading server with microsecond limit orders to front-run execution queues.

5. Latency Trading

What it means: taking advantage of millisecond differences between a high-speed institutional data feed and the simulated retail price feed.

Example: looking at an ultra-fast raw institutional feed and instantly firing orders on the retail platform knowing the retail chart will reflect that price change half a second later.

6. Martingale & Grid Strategies

What it means:

• Martingale: doubling or multiplying lot sizes after losing trades to break even on a single retracement.
• Grid trading: placing continuous buy and sell orders at rigid intervals without directional analysis, stop losses, or risk control.

Example: you buy 1 lot of GBP/USD and it drops 20 pips. You then buy 2 lots; it drops another 20 pips, so you buy 4 lots, escalating position sizes exponentially until your account equity is exposed to catastrophic drawdown.

7. Hyperactive Trading

What it means: flooding the trading server with rapid orders, cancellations, or modifications inside extremely short windows without a credible analytical strategy.

Example: an algorithm submitting 200 order modifications or cancel-replace requests per minute, creating artificial server load and spamming market depth logs.

8. Account Sharing & Pass Services

What it means: handing account credentials over to third parties, hiring "account passing" firms, or delegating trade management.

Example: hiring a service to log into your GenzProp account via VPS and trade on your behalf to complete Phase 1.

9. Exploiting Technical Errors & Glitches

What it means: knowingly trading on mispriced instruments, frozen charts, faulty spreads, or platform-side software glitches.

Example: a weekend rollover glitch causes BTC/USD to display a spread error or frozen quote 2% away from fair value. A trader repeatedly places orders into the frozen quote to lock in a risk-free simulated gain when normal pricing resumes.

10. Gambling & Unsystematic Trading

What it means: reckless, emotional execution devoid of risk parameters — such as "all-in" revenge trading, over-leveraging the entire margin on a single binary bet, or trading without pre-calculated stop parameters.

Example: after taking an initial 2% loss, a trader immediately opens the maximum allowed lot size on a single gold position hoping to recover the loss on one candle.

11. Account Rolling (Churning Accounts)

What it means: purchasing multiple assessment accounts at once and executing ultra-high-risk, reckless setups across them until one accidentally passes by luck.

Example: purchasing five $100k accounts on the same day, opening maximum leverage positions on different volatile pairs across all five, and expecting four to fail while one hits the reward target by chance.

12. Unauthorized Copy Trading

What it means: replicating trades directly from external signals, public copy networks, or third-party providers without independent analysis or authorization.

Example: connecting your GenzProp account to a public trading pool or social copy-trading app where hundreds of retail users execute the identical trade tickets and timestamps simultaneously.

13. Price Arbitrage

What it means: capturing discrepancies between delayed price feeds across different platforms where the trade does not reflect real-market risk or genuine liquidity interaction.

Example: exploiting an artificial spread delay where Platform X updates 3 seconds slower than the broader market, locking in a synthetic, risk-free simulated gain before the feed synchronizes.