Most Popular Futures Prop Firms
In the prop trading industry, rules can vary significantly from one firm to another based on their risk management policies. This section provides key rules for each firm and highlights any significant rule changes along with the specific dates of those changes.
Prohibited Practices
Micro scalping
Hedging
High-Frequency Trading (HFT)
Inactivity Rule
News trading rule
EA/Bots/Algorithmic Trading
Microscalping (only applicable to the funded stage)
Maximum Account Idle Time (Funded Accounts)
Copy Trading
News Trading, Dollar Cost Averaging, Flipping, and Scaling
Daily Loss Limit
Dollar-Cost Averaging (DCA)
Hedging & Trading Micros or Minis Rules
Minis and micros may now be held at the same time.
Two things still apply:
This rule applies across ALL accounts under your control, not just within a single account.
More on hedging rule: https://help.tradeify.co/en/articles/10495868-rules-hedging-correlated-products
Simulated Funded Accounts
Scaling (applicable only to Select Funded Accounts):
Other Trading Rules
Trading Hours
2% Price Limit Rule: This is a restriction that applies when a futures instrument moves within 2% of the CME price limit.
Auto-close: Positions auto-closed at 3:10 PM CT.
Prohibited Practices:
Account Sharing: Account sharing occurs when a trader manages multiple accounts or allows another individual to trade on their behalf. This practice is strictly prohibited, as it disrupts fair competition and undermines the integrity of both the Challenge Account and the FundedNext Account.
Abusing Slow Data Feed: Abusing slow data feed is a practice where traders exploit delayed price updates to execute trades at outdated prices, gaining an unfair advantage over those relying on real-time data. This practice disrupts fair competition and compromises the integrity of the trading environment.
Account Rolling: Account rolling is a high-risk practice where multiple Challenge accounts are purchased with intention to quick succession of funded phase, with some accounts being intentionally sacrificed while focusing on passing others.
Exploiting Platform Errors: Exploiting platform errors in Futures Trading refers to taking advantage of system glitches, price discrepancies, or execution delays to secure risk-free profits. This involves manipulating flaws in the trading platform, such as delayed price updates or technical errors, to execute trades at prices that do not reflect real-time market conditions.
Multi-Order Spam and Coordinated Trading Exploits: Multi-order spam and coordinated trading exploits involve placing and canceling numerous orders in the Depth of Market (DOM) to manipulate market activity or collaborating with others to artificially influence order flow.
Micro-scalping: Opening and closing trades within 10 seconds to capture rapid, small price movements. The threshold applies to profitable trades only, losing trades are excluded. Measured as the proportion of total recorded profit from trades closed within 10 seconds, evaluated per cycle and per account (a warning or deduction on one account does not carry over to another). At 30%: a compliance warning is issued, no deduction or suspension. At 40% or above (a violation): on a Challenge Account, the ability to reach the profit target and advance is placed on hold, the account stays active and trading continues, and eligibility is restored automatically once the percentage falls back below 40%.
On a FundedNext Account, the micro-scalping portion of that cycle's profit is deducted in full, the account stays active, and micro-scalping does not result in account termination at any level. If the deduction equals or exceeds the account's net profit for the cycle, no Performance Reward is issued for that cycle and the withdrawal option is disabled.
Spoofing: Spoofing is a market manipulation technique where a trader places large fake orders (pending orders) to create a false impression of supply or demand, influencing other traders' decisions. These fake orders are canceled before execution, allowing the trader to take advantage of price movements.
Bracket Strategies: Bracket trading is a strategy where traders set predefined buy & sell (limit/stop orders) to take advantage of any sided market movement, and also set profit-taking and stop-loss levels to manage risk and lock in gains automatically. Exploiting the lack of slippage or using tight brackets to benefit from favorable trade executions is prohibited.
Order Book Shaping/Layering Strategies: Layering occurs when a trader places multiple buy or sell orders at different price levels to create a false sense of market depth. These orders are not meant to be executed but are intended to mislead other traders into making decisions based on manipulated market conditions.
Grid Trading: Grid trading in the Futures market involves placing multiple long and short orders at predefined price levels to capitalize on market fluctuations. This strategy aims to capture small price movements within a set range, allowing traders to profit from volatility without relying on market direction. However, due to frequent order placements, grid trading can create excessive market activity and disrupt fair trading conditions.
Wash Trading: Wash trading in Futures occurs when a trader places bids and asks simultaneously or in quick succession to create artificial market activity without taking on actual market risk. This practice is used to mislead other traders, manipulate prices, or inflate trading volume without genuine market intent.
Simulated-Execution Exploitation: Simulated-Execution Exploitation is a prohibited trading practice characterized by a sustained pattern of positions exhibiting little to no adverse market movement, indicating that profits were generated primarily through execution advantages within the simulated environment rather than through genuine market risk-taking.
Tick Scalping: Tick scalping is the repeated practice of opening and closing positions within a very short window to collect a few ticks of profit per trade from favourable simulated fills, often at large or maximum position size.
Latency Arbitrage: Latency arbitrage is a high-risk trading strategy that exploits price delays between platforms, relying on speed advantages rather than market analysis. This strategy takes advantage of discrepancies in market data updates, allowing traders to enter or exit positions before others react.
Reverse Hedge: Reverse hedging is a manipulative strategy where a trader opens opposite positions in different accounts to artificially hedge risk, creating an illusion of controlled exposure while exploiting reward structures.
Hedging with Correlated Instruments: Hedging with correlated instruments involves taking opposite positions in assets that move similarly, reducing actual market exposure while manipulating trading evaluations.
Gapped or Illiquid Market Trading: Gapped or illiquid market trading involves placing trades during low liquidity periods or exploiting large price gaps to gain an unfair advantage.
Account Flipping and Inconsistent Contract Execution: Account flipping and inconsistent contract execution involve using high margin to rapidly grow or blow up accounts through reckless, oversized positions.
Copy Trading and Group Trading: Copy trading refers to replicating trades from another trader or using signal services to execute trades. Group trading occurs when multiple traders collaborate—often in real-time—to achieve specific rewards by executing similar trades simultaneously.
More Information: https://helpfutures.fundednext.com/en/articles/14298337-what-are-the-prohibited-trading-strategies-of-fundednext-futures
Maximum Performance Reward: Withdrawing 100% causes a Hard Breach due to Maximum Loss Limit reset at the starting balance.
Inactivity Rule:
Challenge Accounts: Marked as breached and deactivated after 30 consecutive calendar days of no trades.
FundedNext Accounts: Marked as inactive and deactivated after 30 consecutive calendar days of no trades.
Live Trading Country Eligibility
Traders from these countries can purchase accounts, trade, and receive performance rewards from simulated trading. Traders who achieve live eligibility while residing in one of these countries are contacted directly by FundedNext's Risk Desk to review available options.
Algeria, Angola, Antarctica, Barbados, Benin, Bosnia & Herzegovina, Botswana, Bouvet Island, Bulgaria, Cameroon, Canada (except Ontario), Christmas Island, Clipperton Island, Cocos Islands, Coral Sea Islands, Croatia, Cyprus (North), Dhekelia, Dominica, Equatorial Guinea, Eritrea, Ethiopia, Falkland Islands, Fiji, French West Indies, Gabon, Gambia, Ghana, Guinea, Guyana, Haiti, Heard & McDonald Islands, Jamaica, Kazakhstan, Kenya, Kiribati, Kosovo, Macedonia, Malta, Mauritania, Mauritius, Mayotte, Micronesia, Monaco, Mongolia, Montenegro, Montserrat, Morocco, Mozambique, Namibia, Nauru, Nepal, Nicaragua, Niger, Nigeria, Northern Mariana Islands, Pakistan, Panama, Philippines, Qatar, Romania, Sao Tome & Principe, Senegal, Serbia, Seychelles, Slovenia, South Africa, St Vincent & Grenadines, Suriname, Svalbard & Jan Mayen, Tanzania, Togo, Trinidad & Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Western Balkans, Western Sahara, Zambia, Zimbabwe"
News Trading Rules
Automated Trading Protocols and EA's
Copy trading and trade copiers
Traders may make use of automated trading strategies tailored to their own specific settings so long as these automated tools do not aim to exploit the favorable fills offered in the Simulated Environment.
Traders trading live accounts with automated trading MUST abide by CME guidelines.
2% Price Limit Rule
Cross Instrument Policy
Overnight Holding
Trading Hours
Inactivity Rule
More prohibited conduct can be found via this link
Balancing Freedom and Responsibility
Exploiting System, Pricing, or Latency Errors
Use of Insider or Non-Public Information
Front-Running
Hedging Between Accounts
Unauthorized Account Access
Minimum Trade Duration (10-Second Rule)
Trading That Risks Broker Relationships
Trading That May Create Regulatory Concerns
Externally Marketed Challenge-Passing Strategies
Rolling, Churning, or Gambling Accounts
Arbitrage with Other Firms
Automated Trading / Expert Advisors (EAs)
Copy Trading or Group Trading
Intentional Account Breaching (Sim Farming)
Additional Resources
Overnight Holding
News Trading
Auto-close:
Trading Hours
Inactivity Rule
IP Address Restrictions
Automated Trading Strategies
Copy Trading
Trading Rules
Consistency Rule (40%)
Minimum Trading Days
Inactivity Rules
During the evaluation phase, traders must place at least 1 trade per week to remain active.
During evaluation: missing a week deactivates your account. In your Simfunded account: missing a week pauses it — you remain eligible for profits and payouts but need to reactivate.
DCA/Martingale Rule
Hedging
4.5
139
Minimum Trading Days
Evaluation (Trading Combine):
Express Funded (standard Path):
Express Funded (Consistency Path):
News Trading:
Copy Trading:
Automated strategies and EA's:
On Express Funded account
Inactivity:
Prohibited Trading Strategies:
VPN Rule:
Trading Combine/Reset Purchase Limits
No limit on Trading Combine purchases
2% Price Limit Rule:
XFA Size and Payout Path Lock:
EOD (Standard & No Activation) - Trading Rules
Daily Loss Limit (DLL)
EOD Drawdown Enforcement
Intraday (Standard & No Activation) — Trading Rules
No Daily Loss Limit (DLL) in Evaluation
Intraday Trailing Drawdown Enforcement
When EOD & Intraday Drawdown Stops Trailing
Legacy Products
Legacy 30% Negative P&L Rule (MAE): The 30% Negative Profit and Loss (P&L) Rule limits the loss a trader can incur on any open trade or trades, providing a structured approach to risk management. Under this rule, the live, unrealized, open negative P&L cannot exceed 30% of the account’s profit balance at the start of the day.
**Legacy 5:1 Risk-Reward Ratio Rule:**The 5:1 Risk-Reward Ratio Rule is a risk management guideline that ensures your trades are balanced with a responsible amount of risk relative to the potential profit. For every trade you make, your stop loss should not exceed five times the amount of your profit target.
One Direction Rule (Directionally Biased Trading): Traders are only allowed to hold a position in one direction at any time—either long (buy) or short (sell). Traders are also prohibited from using a non-directionally biased strategy where they have open orders for both sides of the market
Inactivity Rule
News Trading
Expert Advisors
Copy Trading
No Hedging
Contract Scaling Rules
Trading With Risk Management
Using the Trailing Threshold as a Stop Loss
Evaluation Period
Trading Hours Explained
Prohibited Activities
Consequences for Rule Violations:
Apex Code of Conducts Explained
Minimum Trading Days
Trading Day Definition
News Trading
Expert Advisor
Copy Trading
Trading Hours
Microscalping Policy
Inactivity Rule
CME 2% Price Limit Rule
Prohibited Practices
Funded Account Activation
Prestige
Base
Trading Without Stops:
Automated Tools:
All-in Trading:
Price Limit Trading:
News Trading:
Inactivity Rule:
Evaluation Accounts:
Funded Accounts:
Risk to Reward Ratio's:
Order Placement:
Trading Hours:
Copy Trading:
Microscalping:
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