Trading in Real Market Conditions

In our General terms and Conditions for traders, we have to ensure that the transactions made within all types of trading accounts of our project must not interfere with our ability to copy trades to the live fund. If this does occur, individual trades or even entire accounts could be suspended without payout. What does this mean?

Like all other prop firms, we must protect the company against practices that can achieve a risk-free regular profit on demo accounts. Risk-free profit cannot be achieved on a regular basis in live market conditions. Profit achieved in such a way logically does not reveal anything about the trader’s trading ability, and above all, it would make it impossible for our company to profit.

In this article, we discuss practices that do not comply with the functioning of live market conditions. These practices can be done on demo accounts, but not on real accounts. These include those practices we are aware of but it applies to any strategy that is only achievable in live market conditions.

The following guidelines are not acceptable with any prop firm under any circumstance. These are not specific to Funding Talent. You can find the same rules outlined on the website of our competitors, as well as most regulated and trusted brokers.

1. Use of the guarantee of compliance with limit orders (including Takeprofit and Stoploss)

Some brokers offer their traders the guarantee of filling their pending orders at a fixed price. Remember that pending orders are Takeprofit and Stoploss as well. This is, of course, possible only on a demo account. We therefore cannot copy over trades of this nature and it will not be allowed on any Funding Talent accounts.

2. Platform Freezing

There are brokers that will experience an occasional freezing of data. This may only occur for seconds. Seconds however can allow the trader enough time to look at the data of another broker who does not experience the freezing. This allows the trader to “know” where price will go. There are brokers that conduct this unfair practice regularly and systematically. Obviously this would be unsuccessful in live market conditions and is thus not allowed.

3. Use of delayed data feed

It is a very similar practice, brokers can offer ways to utilize arbitrage. Each broker has a different data feed quality. One may have a feed that is slower than the other. There are programs that can detect this delay and use it to enter trades risk-free. Brokers already know these practices and will not allow these types of trading behavior, for example in their T&Cs. We do not allow this type of trading behaviour under any circumstances.

4. Trading on delayed charts

Some brokers  experience a delay on their demo account charts. For example, at Admiral Markets, the delay in CFD shares is actually 15 minutes from the real stock exchange feed. By looking at another broker, I know 15 minutes ahead what happens in the market. Of course, this would not be possible to practice on a real account, so this style also does not comply with the functioning of the real market.

5. Trading at a time of significant macroeconomic reports or utilizing micro scalping techniques

Unfortunately, demo accounts can often achieve much better quotes (upon executing) and smaller or no slippages compared to live market conditions. Therefore, this technique is prohibited on all Funding Talent accounts. It is not possible to scalp highly volatile sessions with almost no risk on a live account. We therefore cannot possibly execute these types of trades and monetize your talent (which is our goal). If you are a news trader or scalper, please understand that our company will also not tolerate any abuse of stop orders either to enter or exit the trade. Scalping news releases on a live account by a “straddling method” incurs slippages, latency and liquidity issues. We wouldn’t be able to pay you profits if we can’t generate them by legitimate means.