Are EA/Bots/HFT allowed? | Funding Traders | Help Center (2024)

FAQs

Are EA/Bots/HFT allowed? | Funding Traders | Help Center? ›

Summary: EA/Bots Allowed | EAs/Bots are allowed but High-frequency Trading

No, we do NOT allow HFT use on our evaluation (challenge) or funded accounts. Our compliance team will flag your account using HFT and the result will be a breached account without a refund.

HFT is prohibited as it can lead to market manipulation, unfair advantages, and can cause instability in the market.

Don't waste your time with HFT EAs as no Broker will allow you to use it on a live account. They will allow HFT, if you work with them direct on a revenue share.

Here's why HFT is restricted on the FundedNext platform:

By executing a large volume of trades within seconds, HFT traders can create false impressions of market activity, influencing other participants' decisions and leading to market manipulation.

The Funded Trader (TFT) allows the use of EAs and AI trading bots, but only under limited conditions. For instance, participants in trading challenges can only use self-created bots. Third-party applications aren't permitted. This policy makes each trader's success reliant solely on their personal skills.

Is HFT legit for FTMO? FTMO is a proprietary trading firm that evaluates and funds traders based on their trading performance. While FTMO does not explicitly prohibit the use of HFT strategies, they do have strict rules and guidelines for traders who are seeking funding.

Traders have the ability to utilize their simulated The Funded Trader account as the primary source of trades (i.e., master account), allowing them to seamlessly replicate their trades into their personal account or other prop firm trading accounts, so long as the necessary expert advisors (EA's) have been enabled.

Ethics and Market Impact

Some professionals criticize high-frequency trading since they believe that it gives an unfair advantage to large firms and unbalances the playing field. It can also harm other investors that hold a long-term strategy and buy or sell in bulk.

High-frequency trading is legal because it isn't obviously illegal.

Which broker allows HFT bots? ›

At Kortana we allow the use of certain Bots & EA's however there are certain restrictions on the types of EA's and bots that can be used. Please note we only allow HFT bots to be used for the challenge phases. If you decide to use HFT bots on your live funded account, your account will be terminated.

No Restrictions on Trading

We offer ideal trading conditions for scalping and high frequency trading, even allowing traders to place orders between the spread as there is no minimum order distance and a freeze level of 0. This means orders including stop loss orders can be placed at any level.

Does FundedNext allow EAs/Indicators? Yes, traders are allowed to utilize Expert Advisors (EAs) and Indicators to enhance their trading strategies at FundedNext. It is important for each trader to ensure that their trading parameters are unique and suited to their individual trading style and account.

Summary: EA/Bots Allowed | EAs/Bots are allowed but High-frequency Trading is not allowed. ​HFT is not allowed even with manually opened trades that lasts 15 seconds or less. HFT is not allowed as it is not replicable in live market conditions in most cases.

I contacted FTMO regarding the use of EAs on both challenges and funded accounts with them, and here is their reply (and might be why Petko's FTMO got shut down, as there were too many people with same strategy using same EA, doing same trades)… Be informed that EAs are allowed at FTMO.

However, you are not allowed to use high-frequency trading (HFT) strategies and Gold Arbitrage EA.

I heard: FunderPro, OspreyFX allow HFT. But there are some more. You have to be very cautious because there have been a lot of props being scam-artists shortly after they allowed HFT for passing the evaluation. Because this is like free money, or getting 100% sure a funded account with little to no effort.

Restrictions to Prevent High-Frequency Trading:

To avoid high-frequency trading (HFT) behaviors, you cannot hold more than 50% of your trades for under one minute. Additionally, opening more than five positions on a losing trade is prohibited, as this constitutes a form of hedging.

FTMO does not explicitly prohibit high frequency trading (HFT) strategies. However, they do have strict rules and guidelines that traders need to follow.