Playing in Real Market Conditions

At Funding Talent, our goal is to provide an opportunity to learn while also being able to make money. For this reason, we ask that all strategies used on the demo accounts do not in any way exploit demo account conditions. Utilizing these types of strategies does not teach a member how to trade nor would it be helpful in a live environment.

Demo accounts are simulated trading accounts that act to “mirror” the live environment. Although we can compare demo accounts to live accounts, they are extremely different in that demo accounts never execute a trade to the liquidity provider. When entering a trade on a live account, there are certain delays and slippage that are natural while the order is being filled. Additionally, demo accounts are more prone to delayed price feed during high impact news and volatility.

Although we are working to make our demo accounts as realistic as possible, it is still important to follow the guidelines below on playing according to live market conditions. 

The following strategies are only possible on a demo account, and therefore are not accepted in our program under any circumstance. Members using these strategies will be denied payouts and removed from the program.

1. Platform Freezing

There are brokers that will experience an occasional freezing of data. This may only occur for seconds. Seconds however can allow the member enough time to look at the data of another broker who does not experience the freezing. This allows the member to “know” where price will go. There are brokers that conduct this unfair practice regularly and systematically. Obviously this would be unsuccessful in live market conditions and is thus not allowed.

2. Use of delayed data feed

It is a very similar practice, brokers can offer ways to utilize arbitrage. Each broker has a different data feed quality. One may have a feed that is slower than the other. There are programs that can detect this delay and use it to enter trades risk-free. Brokers already know these practices and will not allow these types of trading behavior, for example in their T&Cs. We do not allow this type of trading behaviour under any circumstances.

3. Playing on delayed charts

Some brokers experience a delay on their demo account charts. For example, at Admiral Markets, the delay in CFD shares is actually 15 minutes from the real stock exchange feed. By looking at another broker, I know 15 minutes ahead what happens in the market. Of course, this would not be possible to practice on a real account, so this style also does not comply with the functioning of the real market.

4. Exploiting conditions at a time of significant macroeconomic reports or utilizing micro scalping arbitrage techniques

Unfortunately, demo accounts can often achieve much better quotes (upon executing) and smaller or no slippages compared to live market conditions. It’s possible for traders to use stop orders, arbitrage and other exploitative techniques to achieve instant profits with next to no drawdown. These techniques are prohibited on all Funding Talent accounts. It is not possible to scalp highly volatile sessions with almost no risk on a live account and therefore reveals nothing about a trader’s abilities.

Micro Scalping & Scalping

Scalping strategies are allowed within all of our programs. There are no minimum holding times on positions, so long as they do not exploit the demo account conditions through any means listed above, or any other purposeful misuse of our server conditions.

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