What are the restricted and prohibited trading strategies at Pivex Funded?

Modified on Wed, 24 Sep at 6:46 AM

At Pivex Funded, we focus on consistent performance, responsible risk management, and sustainable trading. To ensure fair trading practices, some strategies are not permitted as they expose traders to unnecessary risks or do not align with the skill-based trading that we encourage.

Below is a detailed explanation of these restricted and prohibited strategies, including definitions, examples, and the reasons behind these restrictions.

Prohibited Strategies at Pivex Funded

[Not Allowed] Grid Trading

Definition	Placing multiple buy and sell orders at predefined price intervals, forming a grid structure.
Example	Setting buy orders every 20 pips above the market price and sell orders every 20 pips below.
Why This is Prohibited	Often results in high-risk exposure and overleveraging, especially in volatile markets.

[Not Allowed] Stack Trading

Definition	Placing multiple orders in the same direction without closing previous ones, effectively layering trades to increase exposure.
Example	Opening a buy order for EUR/USD, then adding more buy orders at the same or similar price levels without closing the initial position.
Why This is Prohibited	This practice artificially increases risk and does not reflect strategic, calculated trading decisions.

[Restricted] News Trading

Definition

Trading based on market-moving news events, such as economic reports or central bank announcements.

Example

A trader buys GBP/USD after a positive UK jobs report, expecting a price rise.

Why This is Restricted

Trading during major news events is allowed, but there is a 20-minute restriction. You cannot open or close trades within 20 minutes before and 20 minutes after High Impact news releases.

Reason: Short-term volatility during news can cause trades that do not reflect the trader’s analytical ability. Profits from these events may be excluded from the Challenge review.

[Not Allowed] Hedging

Definition	Opening multiple positions on the same asset in opposite directions to minimize risk.
Example	Buying EUR/USD at 1.2000 and simultaneously selling EUR/USD at the same price.
Why This is Prohibited	Hedging does not reflect real trading skill and is essentially risk avoidance, not risk management.

[Not Allowed] High-Frequency Trading (HFT)

Definition	Trading by rapidly opening and closing positions within very short periods — for example, within a single minute — and repeating this process multiple times.
Example	A trader executes several buy and sell orders on the same pair within one minute to profit from tiny price changes.
Why This is Prohibited	HFT strategies rely on speed and repetition rather than genuine trading skill or analysis. This can create instability in the market and give an unfair advantage. Similar to HFT, *ultra-fast scalping* is a forbidden strategy that uses algorithms to execute a high volume of trades in under a second to capture micro-pip profits.

[Not Allowed] EAs/Bots (Expert Advisors and Trading Bots)

Definition	Automated trading software that executes trades based on preset criteria without human intervention.
Example	An EA opens trades when a moving average crossover is detected.
Why This is Prohibited	Automated trading does not demonstrate the trader’s individual skills or decision-making ability. Consequently, any connection to the trading platform via an external API keys is also not permitted.

[Not Allowed] Copy Trading

Definition	Automatically replicating another's trades, whether manually or automatically, based on external signals.
Example	Subscribing to a signal provider and mirroring their trades in your account.
Why This is Prohibited	Since copy trading reflects the performance of an external party, it prevents us from fairly assessing your individual capabilities. We are committed to funding traders based on their personal trading skills and decision-making.

Why These Rules Matter:
Pivex Funded aims to promote skill-based trading with a focus on responsibility and sustainability. Prohibited strategies often involve high risk, automation, or manipulation, which goes against the principles of consistent, manual trading that we encourage.

Breaching any trading rules will result in your account being blocked and the challenge being considered unsuccessful. Since the platform does not send alerts for approaching limits, it is essential that you regularly monitor your account's progress directly through your Pivex Funded dashboard to ensure you remain compliant.

If you are uncertain about whether a specific strategy is allowed, please contact our support team via support@pivex.com for guidance. We’re here to help you develop safe and effective trading practices.