Prohibited Trading Practices – GenzProp
At GenzProp, we aim to maintain a fair, professional, and sustainable trading environment for all traders. Any trading activity that attempts to exploit system delays, technical weaknesses, or avoids real market risk is strictly forbidden.
These rules ensure that traders are evaluated based on real trading skill, proper risk management, and genuine market participation.
If any prohibited activity is detected, the account may face actions such as:
• Profit cancellation • Account suspension • Account termination • Removal from the GenzProp program
These actions may be applied without prior notice, especially on Instant and Funded Accounts.
Reverse Arbitrage
What It Means:
Reverse arbitrage happens when a trader tries to take advantage of price delays between different platforms or brokers instead of trading the actual market.
This usually occurs when a trader sees a price move on one platform and quickly trades on another platform where the price has not updated yet.
Why It Is Not Allowed:
This practice is not considered real trading because it relies on technical delays instead of market analysis.
It also creates an unfair advantage over other traders.
Example:
A trader sees EUR/USD move up on another broker first and immediately opens a buy trade on GenzProp before the price updates there.
Hedging Between Multiple Accounts
What It Means:
Hedging between accounts means opening opposite trades on different accounts for the same instrument.
Hedging inside a single account may be acceptable depending on trading conditions, but hedging across multiple GenzProp accounts is strictly prohibited.
Why It Is Not Allowed:
This removes real market risk because one account will gain when the other loses.
The goal of GenzProp is to evaluate real trading performance.
Example:
Opening a Buy trade on EUR/USD on one account and a Sell trade on EUR/USD on another account at the same time.
Tick Scalping
What It Means:
Tick scalping refers to opening and closing trades extremely quickly (within seconds) to capture very small price movements.
This is often done using automated systems.
GenzProp Rule:
Tick scalping is not allowed on Instant and Funded Accounts.
Hard Violation:
If 3 trades are closed in less than 10 seconds within one hour, it may be considered a rule violation.
Why It Is Not Allowed:
• Exploits execution speed rather than trading skill • Creates unnecessary load on trading systems • Does not represent meaningful market analysis
Example:
Opening and closing several trades within a few seconds to gain only 1–2 pips repeatedly.
Trade Layering
What It Means:
Trade layering happens when a trader opens multiple trades too quickly within a short time period.
Instead of waiting for a proper setup, the trader keeps adding positions rapidly.
GenzProp Rule:
Only one trade can be opened within a 5-minute period.
Opening another trade before 5 minutes from the previous trade opening may be considered a violation.
Why It Is Not Allowed:
• Creates excessive exposure very quickly • Can imitate grid or aggressive strategies • Prevents proper risk control
Example:
Opening a trade at 10:00 and opening another trade at 10:03.
Minimum Trade Holding Time
GenzProp Rule:
All trades on Instant and Funded Accounts must remain open for at least 3 minutes before they are closed.
Trades closed earlier than this time may be considered a violation.
Why This Rule Exists:
This rule helps prevent:
• Tick scalping • Latency trading • Ultra-high-frequency trading strategies
Example:
Opening a trade at 10:00 and closing it at 10:01:30 would violate the rule.
Closing it at 10:03 or later is acceptable.
Abusive Automated Trading
What It Means:
Using trading robots (EAs) or algorithms in a way that abuses system delays or technical gaps.
Automation itself is not always prohibited, but using bots to exploit infrastructure is not allowed.
Why It Is Not Allowed:
• Exploits platform mechanics • Generates artificial profits • Does not reflect real trading decisions
Example:
A bot opening dozens of trades per minute to benefit from execution delays.
Latency Trading
What It Means:
Latency trading occurs when a trader attempts to benefit from milliseconds of delay between price feeds.
Instead of reacting to real market movement, the trader reacts to delayed price updates.
Why It Is Not Allowed:
• Creates unfair advantages • Disrupts platform performance • Does not represent genuine market trading
Example:
Seeing a price movement on a fast data feed and entering a trade on GenzProp before the price updates.
Martingale and Grid Strategies
What They Mean:
Martingale Strategy:
Increasing the trade size after each losing trade in an attempt to recover previous losses with one winning trade.
Grid Strategy:
Opening many buy and sell orders at fixed price levels without proper risk management.
Why These Strategies Are Not Allowed:
• Can create extremely large losses • Lead to uncontrolled exposure • Do not follow responsible risk management
Example:
A trader doubles the position size after each loss hoping that one winning trade will recover all previous losses.
Excessive or Hyperactive Trading
What It Means:
Opening, modifying, or cancelling a large number of trades within a very short period without a clear strategy.
Why It Is Not Allowed:
• Can overload trading servers • Often indicates automated exploitation • Not considered professional trading behavior
Example:
Opening hundreds of trades in a single day without clear trading logic.
Account Sharing
What It Means:
Allowing another person to trade your account or using external services to pass a challenge.
Why It Is Not Allowed:
GenzProp accounts must be traded only by the registered trader.
Account sharing can violate identity verification and security policies.
Example:
Hiring someone else to trade your GenzProp account.
Exploiting Platform Errors
What It Means:
Taking advantage of technical problems such as:
• Frozen prices • Incorrect spreads • Execution delays • Data errors
Why It Is Not Allowed:
These situations do not reflect real trading conditions.
Example:
Opening trades during a known platform glitch to profit from incorrect prices.
Gambling Behavior
What It Means:
Trading randomly without proper analysis or risk management.
This includes emotional trading or extremely high-risk positions.
Why It Is Not Allowed:
GenzProp promotes professional and disciplined trading, not luck-based speculation.
Example:
Opening a very large trade after a loss in an attempt to recover quickly without analysis.
Account Rolling
What It Means:
Buying many evaluation accounts and applying extremely risky strategies until one account passes by chance.
Why It Is Not Allowed:
This approach relies on probability instead of consistent trading performance.
Example:
Purchasing multiple accounts repeatedly and using very high risk until one account passes the challenge.