There is a common misconception that equates trading in financial markets with gambling—a myth reinforced by traders who exhibit betting-like behaviors. To protect the integrity of our trading community and foster an environment that promotes responsible trading, it is essential to address these trends.
Some traders, driven by the possibility of quick gains, may choose high-risk strategies that frequently lower their chances of success. Although risk is inherent in financial markets, it is crucial to distinguish between legitimate trading practices and gambling tendencies.
At Wall Street Funded, we are committed to protecting our traders and providing opportunities for those who take a responsible approach to the market. If we detect that a trader is using our services with a gambling-like approach, we reserve the right to implement measures to mitigate associated risks. These measures may include adjustments to leverage or profits, which will be applied prudently following a thorough evaluation by our risk management team, focusing on specific behaviors that are explicitly prohibited.
Violations:
Account Churning: This practice involves a trader acquiring multiple evaluation accounts simultaneously, allowing some to fail intentionally while prioritizing the success of others.
Gambling/Betting Behavior: An alert is triggered when high-risk betting patterns are detected, characterized by a lack of a clear plan or strategy.
"All or Nothing" Trading Style: In trading, trade stacking involves opening multiple consecutive positions on a single asset, representing an extreme risk strategy, especially under the 50% drawdown rule per trading idea.
Group Hedging: This strategy, prohibited on our platform, is based on taking opposite positions simultaneously.
Overleveraging: This involves using excessive leverage levels, surpassing prudent thresholds as described here: link.
Economic Event Restriction: Applies only to funded accounts (gains made during economic events will be deducted).
Consequences:
For Challenge Accounts: Accounts progressing past Phase 2 or Phase 1 in the case of the Rapid challenge will be manually reviewed to ensure compliance with our policies. If a violation is detected:
First Violation: Depending on the violation detected, the trader will receive a funded account with a mild warning or be required to repeat the phase with a warning issued.
Second Violation: Repeat of the affected phase and a final warning.
Third Violation: The challenge will be deemed failed, and the trader will not be eligible for a funded account related to that challenge.
Repeated violations without heed to warnings may result in a platform ban.
For Funded Accounts: Upon requesting a payout, trades will be reviewed, and any gains obtained from violating trades will be deducted.
First Violation: Mild warning and possible reduction of the payout.
Second Violation: Warning, payout delay, review of all active accounts from the past 30 days, and potential reduction or rejection of payout.
Third violation: Warning, payment delay, review of all active accounts in the last 60 days, possible reduction or rejection of payment. Consideration of blocking on the platform.
Additional Measures:
Economic Event Restriction: Starting from the third violation, traders are prohibited from participating in economic events on affected accounts (if the trader receives more than three soft breaches on the account, the payout will be rejected).
Violation Removal Condition: To remove a violation, the trader must serve the full duration of the penalty without committing another infraction, regardless of the account status.
Violation Escalation: Violating an unrelated rule may increase the violation level, and accounts may incur penalties such as leverage reduction, mandatory stop-loss, prohibition of soft breaches on news, and limiting risk to no more than 1% per trading idea.
Payout Reduction or Rejection: We reserve the right to deny or reduce payout amounts based on the severity of infractions.
It is important to understand that the examples above are illustrative and that this list is not exhaustive. Risk management policies cover a broad range of behaviors, and adherence to ethical trading practices is essential. Traders are encouraged to carefully review risk management and sanction policies, fully understanding acceptable practices and possible consequences.
Our risk management and sanctions policy provides a transparent framework for maintaining a responsible trading environment on our platform, highlighting the importance of adopting responsible trading practices for the long-term success of our traders