In this article, we will explore the trading strategies prohibited by proprietary trading firms, which traders are generally not allowed to use. Keep in mind that, despite the list, conducting your due diligence on the prohibited trading strategies of your chosen proprietary trading firm is essential.
Here’s a list of common trading strategies that are typically forbidden by most prop firms:
- High-frequency trading
- Ultra-fast scalping
- Latency arbitrage trading
- Any tick scalping strategies
- Any reverse arbitrage trading
- Any hedge arbitrage trading
- Hedging between different accounts
For specific details on prop trading firms’ prohibited trading strategies, please refer to the spreadsheet below:
Proprietary trading firm
Prohibited trading strategies
Trade copiers
EAs, Trade copiers
Weekend holding, Trade copiers
Trade copiers, Martingale, Hedging
Weekend holding
Weekend holding
Weekend holding
EAs, Trade copiers
❌
It’s important to note that, in addition to the list, conducting your own due diligence on the prohibited trading strategies of your chosen proprietary trading firm is crucial.
For comprehensive reviews of the proprietary trading firms listed above, you can visit our website.
