Prop Number One expressly prohibits all Betting and Gambling practices, gambling in trading is an impulsive behavior, driven by chance, without adequate analysis or strategy.
It relies on luck rather than skill, involving reckless actions such as excessive leverage and random trading.
Unlike disciplined trading, gambling leads to unpredictable and unsustainable results.
Context and Objectives
The main objective of this rule is twofold:
Mitigate Risks: The practice seeks to limit the risks associated with single-trade, two- or three-trade maximum daily loss behaviors.
Promote a Balanced Trading Environment: Ensure that traders adopt sustainable strategies and do not engage in high-frequency practices that may compromise the integrity of the market.
Prohibited Activities
Prop Number One is committed to preventing behaviors that could compromise ethical trading and system integrity. In particular:
Risk of daily loss in 1 trade: Strategies that consist of extremely large trades such that the maximum possible risk is incurred in a single trade.
Risk of daily loss in 2 consecutive or simultaneous trades: Strategies that consist of extremely large trades such that the maximum possible risk is incurred in two trades simultaneously or in two consecutive trades.
Risk of daily loss in 3 consecutive or simultaneous trades: Strategies that consist of extremely large trades such that the maximum possible risk is incurred in three simultaneous or three consecutive trades.
Control and Sanctions Mechanism
To detect any violations, Prop Number One uses an automated reporting system that:
Identify trades that mirror those of other traders.
If reported, the affected account is manually reviewed.
If the violation is confirmed during the check:
Prop Number One reserves the right to immediately terminate all associated accounts.
Traders may receive a formal warning or face immediate platform closure, depending on the severity of the case.
What happens if I am alerted about Betting/Gambling?
You can consult the parameters and consequences of the violation in detail at this link: https://faq.propnumberone.com/en/articles/10626527-risk-controls-for-betting-gambling
Impact and Benefits
The implementation of the Betting/Gambling Rule brings numerous advantages:
Reduction of risk of loss: By doing so the trader reduces the risk of failing his challenge or funded account by approximately 45%.
Market Stability: An environment free from aggressive practices fosters greater stability and confidence in the system.
Fair Trading: By promoting sustainable trading strategies, you help create a level playing field for all traders.
Conclusions
This rule is designed to protect the fairness and integrity of trading on Prop Number One.
Traders are encouraged to regularly monitor their metrics via the "account metrics" panel and adjust their strategies to ensure compliance, thus helping to maintain the integrity of the entire platform.