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Prohibited Trading Practices – Detailed Policy

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Written by Key stone

At KeyStone Funded, our evaluation programs are designed to identify traders who demonstrate genuine skill, consistency, and professional risk management.

Any trading activity intended to exploit platform limitations, manipulate evaluation results, or generate artificial, risk-free profits is strictly prohibited.

All evaluation and funded accounts must be traded as though they were managing real capital.

Failure to comply with this policy may result in account termination, cancellation of profits, payout denial, and permanent removal from all KeyStone Funded programs.


General Policy

The following activities are considered violations of the KeyStone Funded Terms of Service:

  • Exploiting technical or pricing inefficiencies.

  • Manipulating the evaluation process.

  • Using third-party account management services.

  • Coordinated trading intended to reduce or eliminate trading risk.

  • Any trading behavior that does not reflect genuine market participation.

Our Risk Team continuously monitors trading activity to ensure a fair environment for every trader.


Prohibited Trading Practices

High-Frequency Trading (HFT)

Using automated algorithms or systems designed to execute an excessive number of trades within extremely short time intervals to exploit execution speed or market inefficiencies.


Latency Arbitrage

Attempting to profit from delayed price feeds, execution latency, or differences between brokers, liquidity providers, or market data sources.


Unauthorized Copy Trading

Copy trading is permitted only between accounts owned and operated by the same trader.

The following are prohibited:

  • Copying trades from another individual.

  • Sharing trading signals for automatic execution.

  • Using third-party signal providers.

  • Mirroring trades between unrelated accounts.


Hedging Across Multiple Accounts

Opening opposite positions across multiple accounts to reduce or eliminate market risk.

Allowed

  • Hedging positions within the same trading account (where supported by the trading platform).

Not Allowed

  • Buying an instrument on one account while simultaneously selling the same instrument on another account.


Multiple Account Hedging

Using several accounts to create offsetting positions or guarantee profits regardless of market direction.


Tick Scalping

Executing a large number of extremely short-duration trades designed solely to capture minimal price movements without meaningful market analysis.


Grid Trading

Placing layered buy and sell orders at predefined intervals without a clearly defined directional trading strategy or professional risk management.


Arbitrage Strategies

Any strategy designed to exploit pricing discrepancies, execution delays, or differences between exchanges, brokers, or liquidity providers.


Group Trading

Coordinating multiple traders or accounts to execute substantially identical trades—including similar instruments, entry prices, timing, and position sizes—for the purpose of influencing evaluation outcomes.


Group Hedging

Working with other traders to place opposing positions across different accounts to guarantee profits or eliminate market exposure.


Third-Party Account Management

Only the registered account owner may operate a KeyStone Funded account.

The following are strictly prohibited:

  • Account management services

  • "Pass Your Challenge" services

  • Renting or selling accounts

  • Shared account access

  • Trading on behalf of another individual


Martingale & Similar Risk Escalation Strategies

Strategies that systematically increase position size after losses—including Martingale or similar recovery systems—are prohibited when they expose the account to excessive or uncontrolled risk.


Excessive Risk-Taking

KeyStone Funded promotes disciplined and sustainable trading.

The following behaviors may be considered excessive risk and may result in account review:

  • Position sizes disproportionate to the account balance.

  • Repeatedly approaching or exceeding drawdown limits.

  • Consistently trading without appropriate risk management.

  • Excessive leverage intended to generate short-term gains.

  • Any trading behavior inconsistent with professional capital management.


Policy Enforcement

If our Risk Team determines that an account has violated these policies, KeyStone Funded reserves the right to take one or more of the following actions:

  • Immediate account termination.

  • Cancellation of any pending or future payouts.

  • Removal of generated profits.

  • Permanent suspension from all KeyStone Funded programs.

Each case is reviewed individually based on trading activity, execution data, account history, and other relevant information.


Our Commitment

KeyStone Funded is committed to providing a transparent, fair, and professional trading environment where success is determined by skill, discipline, consistency, and responsible risk management—not by exploiting platform limitations or artificial trading techniques.

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