What are the restricted and prohibited trading strategies at Pivex?

Modified on Fri, 31 Jul at 6:52 AM

At Pivex, 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 and Restricted Strategies at Pivex

[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

Challenge Phase: trading during major news events is allowed

Funded Phase: trading during major news events is also allowed, but there is a 5-minute restriction. You cannot open or close trades within 5 minutes before and 5 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.

[Restricted] EAs/Bots (Expert Advisors and Trading Bots)

Definition	Automated trading software that executes trades based on preset criteria without human intervention is allowed on accounts up to $100 000 with maximum 2,000 server requests per day.
Example	An EA opens trades when a moving average crossover is detected.
Why This is Restricted	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] 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.

[Not Allowed] Cross-account Hedging

Definition	Cross-account hedging involves opening or holding opposite trading positions on the same asset across two or more accounts.
Example	Account A: Opens a BUY position on EUR/USD at 1.2000. Account B: Simultaneously opens a SELL position on EUR/USD at 1.2000.
Why This is Prohibited	Hedging does not reflect real trading skill and is essentially risk avoidance, not risk management.

[Not Allowed] Overleveraging

Definition	To ensure proper risk management, the total combined margin used by all open positions within a single instrument group must not exceed 70% of your total account balance at any given moment.
Example	Leverage limits vary depending on the instrument group being traded: Forex: Maximum leverage is 1:30 Commodities: Maximum leverage is 1:10 Indices: Maximum leverage is 1:5
Why This is Prohibited	Aggressive cumulative exposure exposes trading accounts to rapid drawdowns that compromise long-term account viability. Keeping combined margin usage under 70% ensures positions remain adequately collateralized and aligned with required risk parameters.

[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. Note: Trades closed within 30 seconds are considered High-Frequency Trading. Receiving more than 30% of profits from such strategy in a cycle constitutes a violation.

[Not Allowed] Copy Trading

Definition	Replicating trades from another trader or external signal source, either manually or automatically.
Example	Following a signal provider and mirroring their trades in your account.
Why This is Prohibited	Copy trading reflects the performance of an external party rather than your own trading decisions. Since Pivex evaluates traders based on their individual skills, strategies, and risk management, copying trades from others prevents us from fairly assessing your personal trading ability.

Note: Copy trading is only permitted between Pivex Trading Challenge accounts owned by the same trader. It is not allowed between Funded Accounts or between a Funded Account and a Challenge account.

Why These Rules Matter:
Pivex 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.