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 is when orders are designed to be placed above and below a set price, creating a grid of orders that increase or decrease incrementally along with the chart price. Having two trades open at a time is not considered grid trading. However, once there are three or more positions in the trading session, with each following order stacked as the original position moves into drawdown, this classifies as grid trading.
The process for identifying grid trading, more often than not, follows the below-stated points:
- Determining the starting price for the grid.
- Choosing an interval, such as ten pips, 50 pips, or 100 pips.
- Determining whether the grid will be with or against the trend.
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.
This strategy involves doubling up losing trades and reducing winning trades by roughly half. Opening subsequent trades on an asset with a difference in ≈50% of the prior trade would result in martingale trading classification. EAs that incrementally open higher lots while price moves against the direction of the orders, adding up to a substantially higher lot size than the first, would also classify as Martingale.
Any instances of breaching our Terms of Use or employing prohibited simulated trading strategies may result in the compromise of the account, disqualification of payouts, and potential prohibition from our services.
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.