Good Practices in Prop Trading
Maintain detailed trading journals documenting your strategy, market conditions, and reasoning for each trade to improve consistency and comply with potential account reviews. Follow strict risk management protocols: never risk more than 1-2% per trade and always use stop-losses.
Stay informed about economic events and market news that could impact your trading instruments, maintain regular trading schedules to develop consistency, and continuously educate yourself about market dynamics and trading psychology. Treat prop trading as a professional business operation.
Prohibited Conducts and Violations
Strictly avoid overnight positions (all positions must close before daily market close), trading during high-impact news events (5 minute before/after NFP, FOMC, PMI, PPI, CPI, ADP, PCE, CPI), exceeding maximum contract limits, and any form of account manipulation or hedging between multiple accounts.
Additional prohibited activities include sharing account credentials, using external automated trading systems not approved by Trade4U, gambling behaviors (inconsistent position sizing designed to recover losses quickly), and any attempts to manipulate or exploit platform functionality for unfair advantage.
Additionally, as this is an educational program, the use of any strategies or trading systems that do not demonstrate clear and objective criteria for market operations, or that cannot be replicated in real market conditions, is prohibited.
Account Review and Compliance Monitoring
All accounts undergo regular compliance monitoring for rule adherence, trading pattern analysis, and performance consistency verification. Unusual trading patterns, rule violations, or suspicious activities trigger detailed account reviews that may result in account restrictions or termination.
Maintain transparent trading practices, respond promptly to any compliance inquiries, and ensure all trading activities align with stated strategies and risk management protocols. Document any unusual market conditions or trading decisions that might appear anomalous during review.