Applicable to ALL accounts:
We strongly advise against external or publicly accessible Expert Advisors (EAs). It is crucial that the parameters of the EA applied to your Optimal account are distinct, as our internal monitoring systems could potentially identify the account for replicating trades. Such replication constitutes a clear violation of our terms and conditions, prompting an investigative process that may lead to a breach of the Optimal account.
EAs with a zero-tolerance include:
-Demo Account Management Services
-Arbitrage Trading (Latency or Reverse)
-Grid Trading & Martingale
-HFT (High-Frequency Trading) – ONLY accepted in ALGORITHMIC EVALUATION (phase 1)
-Grid Trading or Grid Trading EAs
Grid trading and stacking is where excessive orders are opened on one pair, in the same direction all running simultaneously.
A grid includes a trader adding subsequent trades to an original position, sometimes adding when moving into drawdown.
Having 2 open trades on a pair is not classified as grid, however having 3 or more trades open on one pair at any one time, running simultaneously will result in a breach of grid rulings.
Breaching grid trading rules may lead to deductions, rejection of phases, or account termination
Martingale
Martingale is a methodology that seeks to amplify the chance of recovering from a losing streak by constantly increasing the lot size of new trades to circumvent any loss taken.
Any increase in lot size on a subsequent position, on the same pair and in the same direction as the original trade, with the trades running together is viewed as a martingale breach.
Breaches on martingale rules will lead to possible deductions at payout, failure of evaluations or account termination.
High-Frequency Trading:
High-frequency trading (HFT) is a strategy characterised by sophisticated computer algorithms and high-speed telecommunication networks to execute excessive trades within milliseconds. This strategy aims to capitalise on minuscule price fluctuations and exploit market inefficiencies. While HFT may seem enticing due to its potential for rapid profit generation, it poses significant risks and can harm the market.
Here's why HFT is restricted:
HFT trading can distort market prices and create artificial supply and demand. By executing a large volume of trades within milliseconds, HFT traders can create false impressions of market activity, influencing other participants' decisions and leading to market manipulation. Excessive trading volumes generated by high-frequency trading can disrupt market stability. The rapid influx and outflow of orders can create volatility, leading to erratic price fluctuations and increased market uncertainty, making it challenging for other traders to make informed decisions. Due to vast amounts of trades in a short period of time, the servers usually freeze and create consequences.
Example: An HFT trader places a series of buy orders within milliseconds, causing a market price to rise artificially. Observing the sudden surge, other traders may be misled into buying at inflated prices, leading to potential losses when the market corrects itself. An HFT trader also executes a large number of rapid-fire trades within milliseconds, causing rapid price swings in a particular asset. The increased volatility and unpredictability make it difficult for other market participants to assess market conditions and plan their trading strategies accurately.