Within the broader public perception, a misconception lingers, linking financial market trading to gambling. This misconception is often fueled by traders exhibiting behaviors reminiscent of gambling. To uphold the integrity of our trading community and cultivate an environment that champions responsible trading, it becomes imperative to address these tendencies.
Some traders, enticed by the prospect of quick profits, may embrace high-risk strategies that, more often than not, decrease their likelihood of success. While financial markets inherently entail risks, it is paramount to delineate between legitimate trading practices and gambling inclinations.
At TopTier Trader, our commitment revolves around protecting our traders and fostering opportunities for those who approach the market with responsibility. Should we suspect that a trader is employing our services for gambling purposes, we retain the right to implement measures designed to mitigate associated risks. These measures may encompass adjustments to leverage or modifications to earnings. It is crucial to emphasize that such actions will be taken judiciously, following a thorough assessment by our risk management team, targeting behaviors falling within specific prohibited categories.
Violations:
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Account Rolling/Churning:
A concerning practice known as account rolling or churning has surfaced. This involves traders acquiring several evaluation accounts simultaneously, employing a rolling strategy where certain accounts are deliberately allowed to fail while prioritizing the completion of others. Essentially, this tactic aims to navigate evaluations without genuinely showcasing the trader’s skill and proficiency in the market. For instance, a trader might engage in acquiring multiple evaluation accounts concurrently, strategically allowing some to falter while focusing efforts on completing others to create the illusion of trading prowess.
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Gambling/Betting Behavior:
A red flag is raised when individuals exhibit behavior akin to gambling or betting. This involves participating in trades that resemble high-stakes gambles, characterized by the absence of a well-defined plan or strategy. For instance, a trader might impulsively invest a significant portion of their capital in a single trade, driven more by chance than informed decision-making. Another example could be a trader consistently relying on speculative news without conducting thorough research, essentially treating the market as a game of chance rather than a platform for strategic and informed trading.
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All-or-Nothing Trading Style:
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Group Hedging:
Within the trading realm, group hedging represents a prohibited strategy involving the simultaneous trading of opposite positions on the platform. This collaboration occurs when two traders coordinate efforts to exploit the platform by taking opposite positions on the same currency pair simultaneously. In this scenario, while one trader opts for a long position, the other strategically chooses a short position, resulting in a net-zero position on the platform. Although this may initially seem like a neutral stance, it undermines the principles of fair and transparent trading. Such group hedging strategies are strictly prohibited, as they pose a threat to the integrity of the trading environment.
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Overleveraging:
Overleveraging emerges as a concerning practice marked by surpassing prudent levels of leverage. This occurs when a trader employs excessive leverage in relation to their account’s daily drawdown, amplifying the stakes for potential gains and losses. For instance, a trader might utilize a level of leverage that, if the market moves unfavorably, could breach our drawdown limit. This violation poses a considerable risk to both the trader and the overall stability of the trading environment. Overleveraging becomes particularly problematic when the accumulated risk to the account approaches or exceeds 25% of the allowed daily drawdown, underscoring the importance of sound risk management practices.
Consequences for Challenge Accounts:
Upon passing Tier 2, challenge accounts will undergo a manual review for violations of any policies. If a violation is found:
- First Violation: Retry the Tier(s) affected by the violation alongside a warning.
- Second Violation: Retry the Tier(s) affected by the violation alongside a final warning.
- Third Violation: The challenge will be deemed as failed, and the trader will no longer be eligible for the respective funded account associated with that challenge.
Repeated violations could lead to a possible ban from the platform. Note that upon receiving your retry account you will only be required to make the amount that was found in violation for the respective Tier. If the violation amount exceeds the profit target then you would be required to achieve the profit target for the respective Tier.
Consequences for Funded Accounts:
Upon payout request, a review will be conducted, and any trade(s) found in violation that resulted in a profit will be deducted.
- First Violation: White Card (Soft warning issued along with possible reduced/rejected payout.)
- Second Violation: Yellow Card (Warning issued, delayed payout, review of all active accounts within the last 30 days, reduced/rejected payout.)
- Third Violation: Orange Card (Warning issued, delayed payout, review of all active accounts within the last 60 days, reduced/rejected payout, trading suspension of 20 business days.)
- Fourth Violation: Red Card (Final warning issued, forfeiture of any simulated profit generated, and immediate breach of all violated accounts.)
- Fifth Violation: Black Card (Ban from the platform.)
Please note that funded accounts in violation will only be breached upon the fourth violation.
Additional Measures:
Economic Events Restriction:
- From the 3rd strike onward, traders cannot trade economic events on affected funded accounts.
Strike Removal Condition:
- To have a strike wiped off, a trader must complete the penalty box’s entire duration without another violation. Regardless if the violated account becomes breached.
Escalation of Strikes:
- Violating a separate, unrelated rule can lead to the progression of strikes, regardless of the initial violation.
Payout Rejection or Reduction:
- The firm reserves the right to reject a payout in its entirety or reduce the payout amount depending on the severity of the violations.
