EA restrictions on funded accounts: what usually gets flagged
Posted: Sun Oct 04, 2026 11:00 am
I don't run fully automated strategies on prop accounts, but I do use a couple of small tools: a trade manager that moves stops to break-even and a script that enforces my daily loss limit. Before using them on a funded account, I read through the EA policies of several firms. Rules differ between firms and change over time, so check the current terms of yours. But some patterns come up again and again in what tends to get flagged.
High-frequency trading: strategies placing many orders in a short time, often with very short holding periods. Several firms restrict or prohibit this, and some define it loosely.
Latency arbitrage: anything that exploits delays between price feeds. Almost universally banned.
Tick scalping: EAs that try to profit from tiny moves, holding positions for seconds. Some firms are fine with this, others aren't.
Martingale and grid systems: usually allowed in principle, but they tend to break drawdown rules quickly.
For utility tools like mine, which only manage stops or enforce limits, I've usually found them acceptable, but I still asked support in writing before using them. A written answer is worth having if there's ever a dispute.
High-frequency trading: strategies placing many orders in a short time, often with very short holding periods. Several firms restrict or prohibit this, and some define it loosely.
Latency arbitrage: anything that exploits delays between price feeds. Almost universally banned.
Tick scalping: EAs that try to profit from tiny moves, holding positions for seconds. Some firms are fine with this, others aren't.
Martingale and grid systems: usually allowed in principle, but they tend to break drawdown rules quickly.
For utility tools like mine, which only manage stops or enforce limits, I've usually found them acceptable, but I still asked support in writing before using them. A written answer is worth having if there's ever a dispute.