Prohibited Trading Strategies
Updated over a week ago

All-Or-Nothing Trading

All-or-nothing trading is a style of trading where a trader could breach or come close to breaching the drawdown limits in a single trade due to the large volume of positions or lots executed by the trader.

We deem this trading style to be similar to gambling and, therefore, is strictly prohibited.

As a result, the daily and/or per-trade gain limit is set to $10,000.

Trades that are executed at similar times and trades that are closed in several parts will count as a single trade. Your balance is calculated at 5 PM EST.

Our team is working on developing an automation to enforce this rule, but currently, all trades will be evaluated upon a Payout Request. If any trades violate this rule, the excess gain will be subtracted from $10,000.

For example, if a trader gains $12,000 in a single trade or in a single day, $2,000 will be subtracted from the payout, and the total gain on the trade will be $10,000.

If this violation occurs three times or more, your account will be immediately breached and a payout will not be provided.

If the violation occurs on your Evaluation Account, you will need to retake the Evaluation from the Phase where the breach occurred.

Martingale Trading

The Martingale trading strategy is a risky trading method in which the investment amount is increased after each loss or when a trader adds to a losing position, with the expectation that a winning trade will recoup all previous losses and yield a gain.

This strategy is considered gambling and can result in significant drawdowns and the loss of all demo capital if a trader experiences a prolonged losing streak. In theory, this strategy is infallible, but in practice, it is only feasible with unlimited capital. Lark Funding has established a predetermined maximum drawdown level, and all traders must design their strategy around this pre-defined maximum risk level.

Having a well-defined risk management strategy and avoiding placing all bets on a single trade is critical. As a result, engaging in this trading activity is a violation of Lark Funding's Terms of Use and any trades that breach this rule on a Simulated Funded Account will not be considered valid upon requesting a Performance Split.

If this rule is breached during the Evaluation Phase, a trader will be required to return to the Phase where the breach took place and pass again.

Grid Trading

Grid trading is a technique that entails setting opposing buy and sell orders for the same instrument with the same or similar risk. This method can result in market manipulation, excessive leveraging, market instability, and a potential risk-free gain.

As members of the Lark Funding community, it's essential to implement a robust risk management strategy to prevent significant drawdowns and over-leveraging. Consequently, grid trading is not allowed as a trading strategy.

High-Frequency Trading

High-Frequency Trading (HFT) involves the use of advanced computer algorithms and rapid telecommunication networks to execute a vast number of trades in mere split seconds.

Lark Funding does not allow HFT as it may lead to market manipulation, provide unfair advantages, and could potentially destabilize the market. Any trader identified practicing HFT will breach Lark Funding's Terms of Use and will lose their trading privileges on our platform.

Hedging & Arbitrage Between Accounts

It is strictly prohibited to hedge between two or more Lark Funding Evaluation accounts or hedge with any third-party company.

If we identify or have reason to believe this has occurred, your accounts will be breached, and you'll be permanently restricted from taking further Evaluations with us.

We expect and require all traders to operate on the Lark Funding platform with integrity in compliance with relevant laws, regulations, and our Terms of Use.

Holding Into An Earnings Release

Holding a demo Single Share Equity CFD position into an earnings release pertaining to that underlying equity is strictly prohibited.

To avoid being in breach of this rule, you must close all such Single Share Equity CFD positions by 3:50 pm Eastern Time on the day of the release if an aftermarket release, or on a preceding day if a before-market open release.

Violation of this rule will constitute an immediate, hard breach of your account, and any gain or loss on said position will be removed from any gain calculations.

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