The Simulated Market at Blue Guardian Futures is designed to closely mirror live trading conditions, but there can still be some kind of a difference. We understand the unique challenges this creates for our platform, our funding partners, and most importantly, our traders. To maintain a fair, transparent, and balanced trading environment, we've put policies in place to prevent practices that could take advantage of the simulated setup or deviate from ethical trading standards.
Understanding Simulated trading environments
Some trading strategies can take advantage of the simulated fill algorithm, leading to strong performance during the evaluation phase but ultimately resulting in losses when moved to live environments. A small number of traders, either unknowingly or with intent to game the system, may use these strategies, which are strictly prohibited at Blue Guardian Futures.
1. Automated Trading Protocols
At Blue Guardian Futures (BGF), we enforce rigorous guidelines to uphold a fair and transparent trading environment in automated trading:
Automated Scalping: BGF limits the use of automated systems designed for ultra-high-frequency scalping, particularly systems that exceed 200 trades per day.
Automated Tools: AI, bots, and other fully automated trading mechanisms are strictly prohibited across all account types.
Semi-Automated Trading: Allowed only if traders actively monitor and manually manage trades, fully understanding the system’s purpose and limitations.
Automated Behavior: Fully hands-off, continuous, day-and-night trading or any type of complete automation is strictly forbidden.
2. Order Management and Market Conduct
BGF prioritizes ethical trading practices and responsible order management to support a stable trading environment:
Order Placement: Placing multiple limit orders at the same price to manipulate order fills is strictly prohibited.
Gapped or Illiquid Market Trading: Trading strategies aimed at exploiting isolated fills in low-liquidity or gapped markets are not permitted.
Slippage and Bracket Exploitation: Using tight brackets or taking advantage of the simulated market’s absence of slippage to gain favorable fills is forbidden.
Compliance with CME Group: All trading activity must comply with CME Group rules and regulations.
Collaborative Trading: Coordinated trading with others to execute identical or opposing strategies across unconnected accounts is not allowed.
3. Policy Violations and Consequences
BGF enforces strict consequences for policy violations to protect the integrity of our trading environment:
Termination: BGF reserves the right to terminate agreements immediately if a trader violates policies.
Profit Confiscation: Profits obtained through prohibited trading practices will be confiscated.
Evaluation Review: All passed evaluations are subject to review. Traders found to be in breach of policies will not be funded and may be ineligible for refunds.
Understanding Scalping vs. Microscalping
At Blue Guardian Futures, we differentiate between scalping, which is an accepted trading strategy, and microscalping, which is prohibited.
Scalping involves holding trades for a short period, often a few minutes, and targeting small but reasonable profit margins, such as 5-10 points. It requires skill, focus, and a keen understanding of market dynamics, and it can be a viable approach in both simulated and live trading environments.
Microscalping generally refers to executing a high volume of trades with very short holding times, typically under 10 seconds while aiming for small price movements. Traders should ensure their trading activity remains balanced and is not predominantly dependent on this strategy.
To promote consistent trading practices, less than 50% of your total profits may come from trades held for under 10 seconds. This rule applies during both the Evaluation and Funded phases. Excessive reliance on ultra-short duration trades may result in profit adjustments, payout reviews or further account action.
Why Microscalping is Prohibited
Microscalping can exploit the simulated fill algorithms of trading evaluations. This behavior may result in inflated performance metrics during the evaluation phase but often fails to deliver sustainable results in live markets due to the reliance on conditions like minimal slippage and perfect execution. Key issues with microscalping include:
Fill Manipulation: Microscalping can take advantage of simulated environments where fills are less impacted by slippage or latency, creating an unrealistic expectation of profitability.
Market Integrity: The ultra-short durations and high frequency of trades can distort market behavior, making it difficult to maintain a fair trading environment.
Reliability: The strategy's success often hinges on perfect conditions that are rarely found in live trading environments, leading to inconsistent results.
By contrast, scalping, when conducted ethically and within reasonable limits, aligns with Blue Guardian Futures' standards and offers traders a legitimate path to profitability.
While scalping is a legitimate and widely accepted strategy, microscalping is strictly prohibited at Blue Guardian Futures to preserve the integrity of our trading environment.
5. Is Martingale Accepted?
No, Martingale strategies are not permitted at Blue Guardian Futures.
Traders are not allowed to use trading strategies that involve progressively increasing position sizes after a losing trade or series of losses in an attempt to recover previous losses.
Any trading activity identified as Martingale may be subject to review and action in accordance with our trading rules.
Account Inactivity
To keep your account active, you must place at least one trade within the required inactivity period.
Evaluation Accounts: At least one trade is required every 30 calendar days.
Funded Accounts: At least one trade is required every 7 calendar days.
Failure to place a trade within the applicable timeframe will result in the account being considered inactive and breached.
If you have any questions on this topic, please feel free to reach out to our support team via Live Chat, submit a ticket on Discord, or email us at [email protected]. We’re here to help!