The Fair Play Strike Policy is established to ensure that all traders at ETX adhere to disciplined trading practices, align with our firm's standards, and maintain sustainable trading strategies. This policy outlines a three-strike system for traders who exceed risk parameters, with increasing consequences for each strike, leading to potential account suspension.
Strike One: Formal Warning
Criteria: Issued when a trader's account is flagged for any of the following risk parameters:
Utilizing close to the maximum margin in open positions
Engaging in high leverage and excessively risky trading strategies
Gambling practices, such as random trades without analysis or excessively leveraging positions
Discretion: The issuance of a formal warning is at the sole discretion of ETX. We may provide proof to substantiate the flagging of the account.
Strike Two: Final Warning
Criteria: Issued if the trader continues to be flagged for any of the risk parameters mentioned above after receiving the first warning.
Action: The trader will receive a second and final warning reiterating the importance of disciplined trading practices. The trader will be informed that no further warnings will be given, and another violation will lead to account suspension.
Discretion: The issuance of a final warning is at the sole discretion of ETX. We may provide proof to substantiate the continued flagging of the account.
Strike Three: Account Suspension
Criteria: Issued if the trader continues to be flagged for any of the risk parameters mentioned above after receiving two warnings.
Action: The trader's account will be suspended immediately. This action is taken to uphold ETX's commitment to disciplined trading and risk management.
Discretion: The issuance of an account suspension is at the sole discretion of ETX. We may provide proof to substantiate the continued flagging of the account.
Immediate Suspension Criteria
Prohibited Trading Practices: Any engagement in the following practices will result in immediate suspension and account closure:
Non-compliant activities:
Copy trading
Using market-purchased expert advisors
Simulated reverse trading/group simulated hedging
Account management services
High-frequency trading (HFT)
Discretion: The issuance of an immediate suspension is at the sole discretion of ETX. We may provide proof to substantiate the engagement in prohibited trading practices.
Review Period:
Frequency: The review period occurs every trading day.
Enforcement: This policy is enforced in the simulated funded phases.
Implementation and Compliance:
Monitoring: The risk team will continuously monitor traders' activities to ensure compliance with ETX's risk parameters.
Notification: Traders will be notified at each strike level via email communication detailing the specific concerns and required actions.
Support: ETX will provide resources and support to help traders align their strategies with the firm's standards. This includes access to training sessions, educational materials, and one-on-one consultations.
Appeals: Traders may appeal their strikes or suspension by contacting ETX's support team within 7 days of notification for further review.
Feedback and Review:
Policy Review: The policy will be reviewed Quarterly to ensure it remains relevant and effective.
Trader Feedback: Traders are encouraged to provide feedback on the policy and suggest improvements to maintain a trader-friendly environment.
FAQs:
What constitutes high leverage?
High leverage refers to using a leverage ratio that significantly increases the risk of large losses.
How can I appeal a warning or suspension?
Contact the ETX support team within 7 days of receiving the notification. Provide any relevant information for review.
What kind of proof will ETX provide?
Proof may include trading logs, screenshots, and analysis reports detailing the specific behavior that led to the warning or suspension.