“Don’t look for loopholes. Look for an edge.”
Funded7 maintains a Zero Tolerance Policy for strategies that exploit system mechanics rather than trading the market. Violating Rule 4 results in Immediate Termination and Profit Forfeiture.
1. Martingale Definition #
“Averaging down” (Grid) is allowed within risk limits. However, “Martingale” (doubling down to recover losses) is strictly banned.
❌ Banned (Martingale) #
Intentionally increasing the lot size when the price moves against you.
Example (Gold Buy):
- Entry: 1.0 lot @ 2100
- Price drops to 2095: Buy 1.5 lots
- Price drops to 2090: Buy 2.0 lots
Verdict: BANNED. This is gambling, not trading.
✅ Allowed (Averaging/Grid) #
Adding positions with fixed (or decreasing) lot sizes.
Example (Gold Buy):
- Entry: 1.0 lot @ 2100
- Price drops to 2090: Buy 1.0 lot
- Price drops to 2065: Buy 1.0 lot
Verdict: SAFE. As long as the total risk fits Rule 2 limits, this is allowed.
2. System Exploits (Cheating) #
- Arbitrage: Latency arbitrage (exploiting feed delays) and Hedge arbitrage (hedging across multiple accounts/firms) are prohibited.
- Tick Scalping: Strategies specifically targeting pricing errors or “quote stuffing.”
3. Third-Party & Group Trading #
- Account Sharing: You must trade your own account. Sharing passwords is banned.
- Group Trading: Coordinating trades with other individuals to manipulate risk is banned.
- Copy Trading: Coordinating trades with other individuals to manipulate risk is banned.
– NG: Using public signal services or “pass-your-challenge” EAs used by many others.
– OK: Copying your own retail account or using your own private EA.
