Banned strategies compared

What 17 prop firms say about ten strategies that get accounts closed. Every cell comes from the firm’s own rules or help page, linked in the cell.

"Not stated" means we didn’t find the rule on the firm’s pages, not that it’s allowed. Rules differ between programs and between the evaluation and the funded stage, and firms change them often. Read the linked page and ask the firm before you rely on a strategy.

Why firms ban each strategy · Which firm fits your trading?

FirmHedging across accountsCopy tradingEAs and botsHFT and tick scalpingLatency arbitrage and feed exploitsNews tradingOvernight and weekend holdsMartingale and gridGambling and max-lot rulesConsistency rules
Lark Funding
Forex / CFD
Banned Allowed inside one account; banned across accounts and firms. SourceRestricted Only between accounts you own and control; no signals or group trading. SourceAllowed Allowed, except HFT or arbitrage EAs. SourceBanned SourceBanned Arbitrage EAs are banned. SourceAllowed No news restrictions. SourceRestricted Overnight allowed; weekend holding needs a paid add-on. Source MoreNot stated Checked pageBanned All-or-nothing trading banned; $10,000 daily and per-trade gain limit. SourceNo rule No consistency rules. Source
FTMO
Forex / CFD
Banned Opposite positions are allowed only within one account. SourceRestricted Trading in concert with others or letting a third party trade for you is banned. SourceRestricted Allowed unless it makes more than 2,000 server requests a day. SourceBanned Ultra-high-speed tools banned. SourceBanned Exploiting price delays or slow feeds banned. SourceRestricted Free in the evaluation (gap trading banned); funded accounts can’t trade 2 min around restricted news, except Swing. Source MoreRestricted Allowed in the evaluation; funded Standard accounts must close before weekend breaks, Swing accounts are exempt. SourceNot stated Checked pageBanned Overleveraging, one-sided bets and account rolling banned. SourceHas a rule 1-Step: best day must be no more than 50% of total profit to pass. Source
FundedNext
Forex / CFD
Banned Allowed inside one account; banned across accounts or with other firms. SourceRestricted Only between your own challenge accounts; not if a funded account is involved. SourceRestricted Needs a paid add-on; 5K to 25K accounts on MT4/MT5 only. SourceBanned Includes tick scalping and trades held only seconds. SourceBanned SourceAllowed Allowed in the challenge; funded profits in the news window count at 40%. SourceAllowed Overnight and weekend holding allowed. SourceRestricted Grid trading banned; martingale EAs not restricted. Source MoreBanned All-in trades, 70%+ margin use and one-sided bets banned. SourceHas a rule Only on the funded on-demand reward option (40%); none stated for the challenge. Source
The5ers
Forex / CFD
Banned Hedge arbitrage and opposite positions across firms banned. SourceBanned Copying or coordinating with other traders or accounts banned, including shared third-party EAs. SourceRestricted Only if you own the source code and other traders don’t run the same trades. SourceBanned HFT and tick scalping banned. SourceBanned Arbitrage and exploiting price errors banned. SourceRestricted No trades opened or closed 2 min before or after high-impact news; news bracketing banned. Source MoreAllowed Overnight and weekend holding allowed; indices carry a high weekend swap. SourceNot stated Not named; bulk trading (many trades opened at once) is banned. SourceBanned Overleveraging, one-sided bets and gambling-style positions banned. SourceNot stated Checked page
FundingPips
Forex / CFD
Banned Hedging and opposite-account trading banned. SourceRestricted Only between your own accounts or out to your external account; no inbound signals. SourceRestricted Third-party EAs only as trade or risk managers; your own EA with proof of ownership. SourceBanned HFT, tick scalping and server spamming banned. SourceBanned SourceRestricted Holding through news is fine in the evaluation, but purposely trading news is banned. SourceRestricted Allowed in the evaluation; master accounts need the Swing add-on. SourceNot stated Checked pageBanned Over-leveraging and gambling behaviour banned; 20 lots max per trade. Source MoreHas a rule 35% score only on the on-demand reward cycle. Source
Blue Guardian
Forex / CFD
Banned Allowed inside one account; banned between accounts. SourceRestricted Only between accounts legally owned by you. SourceAllowed Allowed for your own strategy. SourceBanned Trades closed in under 2 minutes may be flagged as tick scalping. Source MoreBanned SourceRestricted Allowed in the challenge; funded accounts restricted 5 min around high-impact news. SourceAllowed No overnight or weekend restrictions. SourceNot stated Checked pageBanned Margin use above 80% counts as gambling. SourceNot stated Checked page
Maven
Forex / CFD
Banned Hedging between accounts and accounts that only hedge are banned. SourceRestricted Only manual copying of your own trades; copier software banned. SourceBanned EAs not permitted on any platform. SourceBanned At least 50% of trades must be held over 60 seconds. SourceBanned SourceRestricted No trades opened or closed 2 min before or after high-impact news. SourceAllowed Overnight and weekend holding allowed. SourceBanned Grid and gap strategies banned; martingale not stated. SourceBanned All-in trading and gamifying the challenge banned. SourceNo rule No consistency score on 2-Step Standard. Source
E8 Markets
Forex / CFD
Banned Banned across accounts, even your own. SourceRestricted Allowed across accounts that all belong to you. SourceRestricted Any EA, but identical trades across users can end the account. SourceRestricted No more than 50% of trades held under one minute. SourceBanned Feed abuse and freezing banned. SourceAllowed No news restrictions on E8 Signature. SourceNot allowed E8 Signature positions are closed by 23:00 server time. SourceAllowed Martingale allowed within the platform limits. SourceBanned Risking your whole daily drawdown on one trade is banned. SourceNot stated Checked page
Topstep
Futures
Banned Opposite positions across accounts banned. SourceRestricted Trade copiers allowed across your own accounts; coordinated trading banned. Source MoreRestricted Allowed with conditions; no exceptions for errant trades. SourceBanned Scalping algorithms that exploit sim fills banned. SourceBanned Trading on slow or external data feeds banned. SourceRestricted Trading your full max position size into major news is banned. SourceNot allowed Flat by 3:10 pm CT every weekday. SourceNot stated Checked pageBanned Account stacking banned. SourceHas a rule Best day at or below 55% of the target, or the target rises. Source
Apex Trader Funding
Futures
Banned No hedging of any kind, even within one account. SourceRestricted Trade copying with other traders banned; own accounts not stated. SourceBanned No automation or algorithms. SourceBanned SourceBanned Exploiting the simulation in any way is banned. SourceRestricted Allowed for your normal strategy; two-sided news bets banned. SourceNot allowed Positions must be closed before the market close. SourceNot stated Checked pageBanned Using the full drawdown as a stop and stockpiling accounts banned. SourceNo rule Not applied in the EOD evaluation. Source
Take Profit Trader
Futures
Banned No opposite positions across accounts you control. SourceRestricted Copiers allowed only across accounts solely yours. SourceBanned No bots or algos. SourceNot stated Checked pageNot stated Checked pageRestricted PRO accounts must be flat 1 min before and after FOMC, NFP and CPI. SourceNot allowed Positions can’t be held from one session to the next. SourceNot stated Checked pageNot stated Checked pageHas a rule Best day below 50% of net profit; the goal rises, no fail. Source
My Funded Futures
Futures
Banned No hedging of any kind on the same underlying. SourceRestricted Copying other traders banned; own-account copying not stated. SourceRestricted Allowed if it doesn’t exploit sim fills. SourceBanned SourceNot stated Checked pageRestricted Evaluations may trade Tier 1 news; Rapid and Pro Sim Funded can’t. SourceNot allowed Positions auto-close at 4:10 pm ET. SourceNot stated Checked pageNot stated Checked pageHas a rule 50% in the Rapid evaluation. Source
Tradeify
Futures
Banned Banned in one account or across accounts, including correlated products. SourceNot stated Checked pageRestricted Your own bot only, with proof of ownership; not shared or used at other firms. SourceRestricted HFT bots banned; funded payouts need most trades held over 10 seconds. SourceBanned Exploiting price-display errors or delays banned. SourceAllowed No news restrictions on any account. SourceNot allowed Flat by 4:45 pm ET. SourceNot stated Not named; DCA allowed, endless averaging down discouraged. SourceNot stated Checked pageHas a rule 40% in the Select evaluation. Source
Lucid Trading
Futures
Banned All hedging banned, including across firms. SourceAllowed Trade copiers permitted. SourceAllowed Automated systems permitted; you own any errors. SourceBanned Microscalping flagged if over 50% of profit comes from trades of 5 seconds or less. SourceNot stated Checked pageRestricted Allowed on Flex, Pro and Direct; a hard breach on LucidDaily. SourceNot allowed Flat by 4:45 pm ET. SourceRestricted Scaling in allowed; martingale strongly discouraged. SourceNot stated Checked pageHas a rule LucidFlex evaluation: largest day 40% or less (50% with add-on). Source
Alpha Futures
Futures
Banned Banned across accounts and within one account (e.g. long NQ, short MNQ). SourceRestricted Allowed for your own accounts; group trading banned. SourceBanned AI, bots and full automation banned; semi-automated signals allowed. SourceBanned Over 100 trades a day and tick scalping banned. SourceNot stated Checked pageRestricted No limits on evaluations; Standard, Zero and Direct qualified accounts can’t trade 2 min around high-impact news. SourceNot allowed Flat by 4:20 pm ET. SourceRestricted Reasonable DCA allowed; order-book spamming banned. SourceBanned All-or-nothing trades and account rolling banned. SourceHas a rule 50% on the evaluation, 40% once qualified. Source
Bulenox
Futures
Not stated Checked pageRestricted Copiers allowed for your own use; shared or commercial tools not. SourceRestricted Your own bots for personal use only; third-party API connections cost extra. SourceNot stated Checked pageNot stated Checked pageAllowed No blackout windows. SourceNot allowed Flat by 3:59 pm CT; overnight holding strictly prohibited. SourceNot stated Checked pageNot stated Checked pageHas a rule Applies to payouts; missing it is not a violation. Source
Earn2Trade
Futures
Banned Hedging or pooling risk across unrelated accounts banned. SourceBanned Trade copiers not allowed on any program. SourceNot stated Not named; software that gives an unfair advantage is banned. SourceBanned Ultra-fast data entry banned. SourceBanned Exploiting price display errors or delays banned. SourceAllowed No restrictions around economic announcements. SourceNot allowed Flat by 3:50 pm CT. SourceNot stated Checked pageBanned An unrealistic number of contracts in one day is banned. SourceHas a rule 30% rule, so at least four profitable days. Source

Why firms ban this

Hedging across accounts

Opposite positions on two accounts mean one of them almost always passes, whatever the market does. That tests nothing about your trading, and on a real exchange it can count as wash trading. Hedging inside one account is a separate question, and firms answer it differently.

Banned, restricted or ruled (firms in the table): 16 / 17

Copy trading

Firms want to fund your own decisions. Copying a signal seller or another trader means many accounts take the same risk at once, and it hides who is really trading. Copying between your own accounts is often allowed.

Banned, restricted or ruled (firms in the table): 15 / 17

EAs and bots

A bot can trade far faster and more often than a person, and the same commercial EA running on hundreds of accounts concentrates the firm’s risk. Some firms ban automation outright; others allow your own code only.

Banned, restricted or ruled (firms in the table): 13 / 17

HFT and tick scalping

Trades held for seconds often profit from the simulator’s instant, slippage-free fills rather than from the market. Those results disappear on a live account, so firms ban them or set a minimum holding time.

Banned, restricted or ruled (firms in the table): 15 / 17

Latency arbitrage and feed exploits

Trading against a delayed or wrong price is a near-certain win in a demo environment and impossible to repeat with real money. Every firm that mentions it bans it.

Banned, restricted or ruled (firms in the table): 12 / 17

News trading

Prices gap and spreads widen around big releases. In a simulation the fills can be far better than a live market would give, so some firms block trading in a window around high-impact news, especially on funded accounts.

Banned, restricted or ruled (firms in the table): 11 / 17

Overnight and weekend holds

Weekends and the daily futures close leave positions exposed to gaps the firm can’t manage. Futures firms usually require you to be flat every day; forex and CFD firms often allow holds in the evaluation.

Banned, restricted or ruled (firms in the table): 13 / 17

Martingale and grid

Doubling down or stacking orders at fixed intervals wins small and often, then loses big. It can pass a challenge by luck and blow up a funded account. See why martingale fails a prop challenge.

Banned, restricted or ruled (firms in the table): 4 / 17

Gambling and max-lot rules

One oversized trade that risks the whole daily or max loss turns the challenge into a coin flip. Firms call it all-or-nothing trading, overleveraging or account rolling, and cap lot sizes or margin use to stop it.

Banned, restricted or ruled (firms in the table): 12 / 17

Consistency rules

A consistency rule stops one lucky day from carrying the whole result: your best day must stay under a set share of total profit. It usually delays a pass rather than failing you. See consistency rules explained.

Banned, restricted or ruled (firms in the table): 11 / 17

Before you buy a challenge

For targets, drawdowns and daily limits, see the prop firm rules comparison.