FAQ

These are the strategies NOT allowed at WSFunded:

• High-Frequency Trading (HFT)
• Trades lasting less than 60 seconds
• Grid trading
• Arbitrage trading
• Hedge trading
• Latency trading
• Reverse trading
• Tick scalping
• Hyperactivity

We reserve the right to immediately close your account if any of these are detected.

At WSFunded, we focus on maintaining the integrity and fairness of our trading platform. As a reminder, WSFunded’s business philosophy centers on helping traders refine their skills, becoming consistent and successful operators by replicating real market conditions. In other words, part of our mission at WSFunded is to ensure that those who thrive on our platform can also succeed in a genuine market environment.

With that goal in mind, we cannot tolerate trading approaches that are overly risky or likely to result in substantial losses under real market conditions. To support these objectives, we are enforcing the following safe trading practices:

Violations we monitor:

• Account cycling/rotation: Purchasing the maximum number of evaluation accounts and attempting to complete them continuously by sacrificing some accounts as needed.

• Gambling behavior: Placing trades that resemble large bets without a clear plan or strategy.

• Trade stacking: Opening large consecutive positions on a single instrument to bypass risk limits.

• Group hedging: Executing opposite trades across the platform as a form of risk hedging.

• Overleveraging: Exceeding proper leverage levels when trading.

In Funded accounts, maximum lot exposure applies per account size. This is the total combined number of lots allowed at any given time.

Example:

With a 100K account and a 35-lot max exposure in forex, you can place one trade of 35 lots or split it (e.g., 3 trades of 10 lots and 1 of 5 lots). You may not open trades that total more than 35 lots at the same time. For instance, two trades of 20 lots each (40 lots total) exceed the limit.

New trades can be opened the same day, as long as the 35-lot limit per trading idea is respected.

Understanding “trading idea”:

A trader must not risk more than 50% of the daily drawdown limit on a single trading idea. To properly assess risk, a Stop Loss (SL) must be added within two minutes of opening a trade.

Example:

If a client places a buy order on XAUUSD with 30 lots risking 3%, even if the 30 lots are split into 3 trades of 10 lots each, the risk for the overall idea is still 3%. If this exceeds 50% of the daily drawdown limit, the practice will be classified as gambling.

MAXIMUM LOT EXPOSURE

Penalties for breaching these rules may include:

• Reduced leverage

• Daily trade limits

• Lot size caps

• Stricter daily loss limits

• 1% max risk rule

• Permanent exclusion from the firm

Our goal is to help you improve as a trader and risk manager while monetizing the flow of trades you generate. This evaluation is designed to gather high-quality data to monetize effectively, enhancing both our stability and the industry’s.

✅ Allowed:

Manually copying trades between your own accounts is permitted only during the Evaluation Phase, as long as the account balances are different. (Never during the Funded phase)

For example, you may manually copy trades if one of your accounts has a 5K balance and the other has 25K.

❌ Not allowed:

• Copying trades automatically or manually between Funded accounts (either between two funded accounts or between a challenge and a funded account).

• Copying trades between accounts with the same balance, whether done manually or automatically.

• Using external copy tools such as Trader-Copier, Social Trader Tools, TraderConnects, etc.

• Copying trades between different clients’ accounts.

⚠️ Important:

If we detect improper use of copy trading on any account, it will be considered a violation of the rules and may result in corrective actions, including account termination and removal from the program.

Requirement for Solo Traders:

All participants in our challenges and simulated funded programs must be the sole managers of their accounts, as stated in our Terms and Conditions.

VPN/VPS Usage Discouraged:

We do not recommend using a VPN or VPS to access simulated trading accounts due to its impact on internal data tracking systems.

This practice aligns with policies in services that prohibit multiple users on a single account.

Permitted Use of VPN/VPS:

Using a VPN or VPS is allowed; however, if potentially harmful activity is detected on your account, VPN or VPS usage will be a significant factor in evaluating possible violations of our terms and conditions.

Terms and Conditions Compliance:

We kindly ask all participants to comply with our Terms and Conditions, including not allowing multiple users to operate the same account.

Prohibited During KYC/AML Verification:

Connecting to Virtual Private Networks (VPNs) or Virtual Private Servers (VPSs) during the KYC/AML verification process is strictly prohibited.

Consequences of VPN/VPS Use During KYC/AML:

If you are connected to a VPN or VPS during the KYC process, your account may not be funded.

If it is discovered that you completed KYC/AML verification using a VPN or VPS, your simulated funded account may be deactivated or disqualified.

Risk Management Policy and Penalty System

There is a common misconception that equates trading in financial markets with gambling—a myth reinforced by traders who display betting-like behavior. To protect the integrity of our trading community and foster an environment that promotes responsible trading, it is essential to address these trends.

Some traders, driven by the possibility of quick profits, may choose high-risk strategies that often reduce their chances of success. While risk is inherent in financial markets, it’s crucial to distinguish between legitimate trading practices and gambling-like behaviors.

At Wall Street Funded, we are committed to protecting our traders and providing opportunities to those who take a responsible approach to the markets. If we detect that a trader is using our services with a gambling mindset, we reserve the right to take action to reduce the associated risks. These measures may include adjustments to leverage or payouts and will be implemented carefully following a thorough evaluation by our risk management team, focusing on specific behaviors that are explicitly prohibited.

🔴 Violations:

• Account Churning: Acquiring multiple evaluation accounts simultaneously and letting some intentionally fail while focusing on succeeding with others.

• Gambling Behavior: High-risk betting patterns with no clear plan or strategy trigger an alert.

• All-or-Nothing Trading Style: Stacking trades by opening multiple consecutive positions on a single asset, which constitutes extremely risky strategy, especially when breaching the 50% drawdown per trading idea rule.

• Group Hedging: Taking opposite positions across different accounts—a prohibited strategy on our platform.

• Overleveraging: Using excessive leverage beyond the prudent levels defined here:

  https://faq.wsfunded.com/en/articles/8794641-what-prohibition-can-i-receive-for-an-unauthorized-strategy-in-wsf

• Economic Event Restrictions: This only applies to funded accounts. Profits gained during economic events will be deducted.

🚨 Consequences:

For Challenge Accounts:

Accounts that pass Phase 2 (or Phase 1 in the Rapid Challenge) will be manually reviewed for compliance.

• First violation: Depending on the case, the funded account may be delivered with a soft warning, or the trader may need to repeat the phase and receive a warning.

• Second violation: Repetition of the affected phase and a final warning.

• Third violation: The challenge will be considered failed, and the trader will not be eligible for a funded account from that challenge.

Repeated violations without addressing warnings may result in permanent exclusion from the platform.

For Funded Accounts:

All payouts are reviewed. Any profits resulting from rule violations will be deducted.

• First violation: Soft warning and possible payout reduction.

• Second violation: Warning, payout delay, full review of all active accounts in the last 30 days, and possible reduction or rejection of payout.

• Third violation: Warning, payout delay, review of all accounts active in the last 60 days, possible payout rejection, and potential platform ban.

🛡️ Additional Measures:

• Economic Event Restriction: After three violations, traders are banned from participating in economic events with the affected accounts. (If a trader receives more than three soft breaches, the payout will be rejected.)

• Violation Clearance Condition: A violation can be cleared if the trader completes the full penalty period without committing further infractions.

• Violation Escalation: Breaking unrelated rules may increase a trader’s violation level. Accounts may be penalized with lower leverage, mandatory stop losses, disallowed soft breaches during news, or a 1% max risk per trading idea.

• Payout Rejection or Reduction: We reserve the right to reject or reduce payout amounts based on the severity of the infractions.

⚠️ Please note:

The examples above are illustrative, not exhaustive. Our risk management policies cover a wide range of behaviors, and it is essential to adhere to ethical trading practices. Traders are encouraged to thoroughly review the full risk management and penalty policies to fully understand acceptable practices and potential consequences.

This framework ensures a transparent environment that supports responsible trading and long-term success for our traders.

A trading idea refers to a group of trades that share a common logic or intention, executed on the same financial instrument. These trades may be opened simultaneously or within a few minutes of each other, as long as they follow the same direction (buy or sell) and stem from the same analysis or strategy.

Trades are considered part of the same trading idea if:

• They are placed on the same asset

• They have the same direction (buy or sell)

• They are executed within 30 minutes of one another

After the 30-minute interval has passed since the last trade was closed, new trades on the same asset and in the same direction will be considered part of a new trading idea, unless there is a technical justification to the contrary.

🔍 In other words:

A trading idea may consist of one or several open positions on the same instrument, placed with the intention of capturing a specific market opportunity identified through technical, fundamental, or quantitative analysis.

📊 Example 1 – Different assets = different ideas

Total Risk:

• EURUSD: 2%

• XAUUSD: 1%

📊 Example 2 – Same asset, same time window = same idea

Total Risk:

• EURUSD: 2%

• XAUUSD: 1%

📊 Example 3 – Multiple entries over time, still same idea if aligned

Total Risk:

• EURUSD (Idea 1): 2.5%

• XAUUSD (Idea 2): 1%

• XAUUSD (Idea 3): 0.5%

This structured definition ensures consistency in risk assessment and enforces responsible trading behavior.