Knowledge Base
Prohibited Execution Practices
Comprehensive Support & FAQs
Prohibited Execution Practices at SCAP Firm
At Scap Firm, we maintain a strict policy against practices that exploit our systems, disrupt market integrity, or provide unfair advantages. These rules apply across all stages, including evaluation phases and funded accounts. Below are detailed prohibitions with examples of what constitutes misconduct:
Exploiting System Errors
Examples:
Using inaccurate price feeds or display errors to execute orders.
Delays in data updates or slow external feeds used to gain an unfair advantage.
External or Slow Data Feeds
Performing orders using outdated or unreliable data sources that do not reflect real-time market conditions.
Example: Execution based on historical data or feeds from sources with a significant delay in market data updates.
Manipulative Execution
Examples:
Coordinating orders between connected accounts or accounts held with different Smarket entities to manipulate market outcomes.
Simultaneously entering into opposite positions in closely related assets to artificially control positions and profit from volatility.
Violation of Platform Terms
Executing operations that directly violate the terms outlined in the Smarket platform, including those in contradiction to Demo or funded account guidelines.
Unfair Technological Advantages
Utilizing advanced algorithms or automated systems to perform thousands of rapid orders within seconds, manipulating small price movements for profit.
Example: High-frequency Execution where the majority of orders occur within milliseconds.
Non-Compliant Executions Practices
Engaging in operations strategies that significantly deviate from real-world market operations, creating potential harm to Smarket or its Execution venues.
Example: Implementing strategies that rely solely on theoretical data and ignore practical market realities.
Arbitrage Executions
Networking Interference
Execution Around News Events
Third-Party Expert Advisors (EAs)
Utilizing generic or third-party EAs, particularly those used by multiple users, which engage in practices such as:
Latency arbitrage, where orders are executed during periods of low liquidity to exploit pricing discrepancies.
Reverse arbitrage or hedge arbitrage Execution.
Not owning or having the ability to customize the underlying source code of the EA used.
Account Sharing or Management
Allowing third parties to manage or access funded accounts for Execution purposes.
Account Management Services “Pass your Challenge” is also prohibited.
IP Address Sharing
Hedging Restrictions
Engaging in hedging across multiple accounts with insignificant price or time differences, intended to lock in profits or offset losses.
Example: Executing opposite orders simultaneously in related assets without a valid time or price difference.
Reverse Execution
Opening opposite positions across multiple accounts—either simultaneously or sequentially—with the intent to secure a guaranteed outcome is strictly prohibited.
This includes mirrored orders across challenges, funded accounts, or related assets.
Violations will result in disqualification, profit removal, and potential account bans.
Tick Scalping
A user engages in rapid-fire Execution, entering and exiting positions within seconds based on minor fluctuations in price that occur with each tick of the market. This strategy leverages extremely short-term price movements, often resulting in high-frequency, high-risk orders aimed at capitalizing on small, rapid market changes.
One-Sided Bets and Gambling
Gambling: Attempting to exploit the system by using risk levels that significantly exceed the recommended limits.
One-Sided Bets: Consistently placing orders in one single direction without conducting thorough market analysis or risk management.
Example: A user consistently enters long positions on a currency pair, assuming it will indefinitely rise regardless of market conditions.
Simultaneous Account Limitations
At SCAP Firm, users are allowed to participate in multiple challenges; however, they may only operate one active account per account type at a time.
For example, a user may simultaneously hold:
One (1) active 1-Step Challenge
One (1) active 2-Step Challenge
One (1) active 1-Step Advanced Challenge
Holding multiple accounts of the same type at the same time is strictly prohibited, including through direct ownership, indirect access, or copy-Execution structures. This rule helps ensure fair use of our programs and prevents strategy duplication or risk clustering.
Gap Execution
Using price gaps to generate unfair profits, specifically by opening orders or closing positions 30 minutes before market closing or before holiday events.
Violations may lead to leverage reduction, warnings, restrictions, or account cancellation.
Contradictory Real-World Execution Practices
Fake Manual Intervention
Running fully automated systems (bots or EAs) that simulate manual actions—such as mouse clicks, keyboard delays, or random pauses—to bypass EA detection restrictions.
Example: A user uses automation that mimics human behavior to appear compliant with manual Execution policies.
Use of Prop Firm Strategy Services or Signal Groups
Participating in Discord, Telegram, or online services that provide pre-packaged strategies or signals designed specifically to exploit prop firm challenges.
Risk: These services often promote unethical or grey-area tactics that undermine fair use of the platform.
Deliberate Trade Transfer (Pass-through Execution)
Executing coordinated orders across two or more accounts using correlated instruments to shift risk, profit, or drawdown.
Example: Taking a loss on one account by entering a short on gold, while profiting on another account by going long on silver, with the intent of controlling aggregate risk or outcome.
Consequences of Violations
If your account is found to be abusing the system and violating Execution rules, we will immediately suspend, block, or restrict your access to specific services.
No refunds or profits will be processed, and you will be permanently banned from SCAP Firm.
Who should I contact for technical and Execution support?
At SCAP Firm, we are committed to addressing your needs promptly, no matter when they arise!
We believe every user deserves full support and assistance, whether for technology-related inquiries, Execution concerns, or any other issue.
To expedite the resolution process, please ensure your request includes the following:
A detailed description of the issue.
Your full name.
Program type and level.
Account number.
Relevant ticket numbers, screenshots, or terminal log files.
How to reach us?
Email: Send all information to [email protected]
Live Chat: Visit our website and click the live chat button located at the bottom right corner.