Prop Number One allows traders to participate in copy trading on another Prop Number One account, a prop firm or retail broker, as long as the accounts are owned by the same person.
Background and Objectives
The main objective of the rules on copy trading is twofold:
Promoting a healthy trading environment: Ensuring that each trader operates independently, without exploiting unauthorized copy trading mechanisms.
Preventing fraudulent behavior: Prevent identical or similar trading patterns from being used to gain unfair advantage.
Requirements and Limitations
To take advantage of copy trading, the following criteria must be met:
Account ownership: Copy trading is allowed only if all accounts involved are owned by the same person.
Prohibition of copy trading between unrelated accounts: Copy trading between accounts belonging to different people, including relatives, family members or friends, is strictly prohibited.
Forbidden Activities
Prop Number One expressly prohibits certain activities that may undermine the fairness of the system, specifically:
Identical trades between traders: If a significant percentage of a trader's trades are identical to those of one or more other traders, based on parameters such as:
Opening price
Closing price
Lot size
Lot ratio
Symbols
Misuse of Expert Advisors: Although traders may use the same Expert Advisor, each must ensure that their trading parameters are unique and reflect their own style. Where identical parameters and similar trades are found, this will be considered copy trading.
Group trading: If two or more accounts are identified with strikingly similar patterns and trading criteria that, while claimed to be different, result in similar categories, group trading may be suspected.
Control Mechanism and Sanctions
To detect possible violations, Prop Number One adopts an automated reporting system that:
Identifies trades that mirror those of other traders.
If reported, the affected account is manually reviewed.
If a violation is confirmed during the inspection:
Prop Number One reserves the right to terminate all associated accounts immediately.
Traders could receive a formal warning or face immediate platform closure, depending on the severity of the case.
What happens if I am alerted to Copy Trading?
You can see the parameters and consequences of the violation in detail at this link: https://faq.propnumberone.com/en/articles/10624328-risk-controls-for-copy-trading
Impact and Benefits
The implementation of these rules ensures:
Fairness in trading: Each trader operates independently, preventing the formation of groups.
Platform integrity: Rules prevent abuse of the copy trading system, maintaining a level playing field for all.
Transparent and accountable environment: Planned controls and sanctions ensure that only ethical and autonomous trading practices are allowed.
Conclusions
Prop Number One's copy trading rules are designed to protect the fairness and integrity of the system, ensuring that traders can enjoy the benefits of copy trading without compromising the market.
By trading independently and adhering to these strict criteria, each trader contributes to maintaining a healthy, transparent, and competitive trading environment.