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HFT Trading

Learn what qualifies as High-Frequency Trading (HFT) and how it is regulated.

High-Frequency Trading (HFT) is restricted on Flagship Funded accounts.

Strategies that exploit execution speed, latency, or pricing inefficiencies are not permitted.


What is Considered HFT

HFT typically involves:

  • Extremely short trade durations

  • High order frequency within short timeframes

  • Automated or algorithmic execution targeting inefficiencies


HFT Parameters

The following patterns may be flagged as HFT:

Parameter

Threshold Indicator

Trade Duration

Trades opened and closed within seconds

Order Frequency

Multiple trades executed rapidly in succession

Execution Pattern

Repetitive, automated trade entries

Latency Exploitation

Trading based on price feed delays


Examples of Prohibited Activity

  • Opening and closing trades within seconds repeatedly

  • Scalping based purely on execution delays

  • Using bots designed for latency arbitrage

  • Flooding the system with rapid orders


Violation Handling

If HFT behavior is detected:

  • Profits from flagged trades will be deducted

  • Account will undergo risk review

  • Continued violations may result in account breach or termination


Important Notes

  • Not all scalping is considered HFT

  • Manual trading with reasonable durations is permitted

  • The focus is on execution abuse, not strategy type alone


Best Practices

  • Maintain realistic trade durations

  • Avoid excessive rapid-fire execution

  • Ensure strategies are not dependent on latency or system inefficiencies

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