We support a wide range of trading strategies, including trading assistant tools and EAs. However, Martingale, Reverse Trading, Copy Trading between accounts of different users, High-Frequency Trading, Grid Trading, Latency Arbitrage, demo environment exploitation, and account sharing are strictly prohibited. These methods pose excessive risks and violate Moneta Funded’s commitment to responsible trading. Use of any prohibited strategies will result in immediate account termination. Cheating, fraud, poor risk management, or exploitation of the simulated environment are also forbidden under our Terms & Conditions.
Detailed Overview of Prohibited Trading Strategies:
Risk Management & Trading Conduct
Moneta Funded prioritizes disciplined, responsible, and sustainable trading practices. All trading activity is expected to reflect a genuine trading strategy that applies risk management principles a reasonable and prudent market participant would use when trading their own capital.
In situations where trading activity indicates elevated or inconsistent risk management, Moneta Funded may apply temporary risk parameters to one or more accounts (for example, a temporary risk-per-trade limit). These measures are preventative and are intended to help maintain stable and sustainable trading conditions. For more information, please refer to our article: Temporary Risk Limits on Funded Accounts.'
Trading behavior that deviates from responsible risk management standards may be deemed non-compliant. This includes:
Allocating a substantial or majority portion of the allowable daily loss to a single trade idea, whether through realized losses or stop-loss exposure.
Allocating most or all available margin to a single trade idea or set of highly correlated positions.
Practices that undermine capital preservation, increase the probability of outsized losses, or rely on exposure patterns inconsistent with long-term trading sustainability are not permitted. Moneta Funded reserves the right to classify such activity as prohibited or non-compliant and to take appropriate action, including account restriction, termination, or disqualification from future participation.
Martingale Trading
Martingale-style trading refers to strategies where position size or overall exposure is increased after losses with the intention of recovering previous losses through a single winning trade. This approach is considered high-risk because it can quickly lead to disproportionately large losses if the market continues to move against the position.
Occasional and modest price averaging or position adjustments as part of normal trade management are acceptable, provided that overall risk on the trade remains controlled and does not escalate significantly. However, repeatedly increasing trade size after losses, concentrating a large portion of the account into recovery trades, or escalating exposure during drawdowns may be considered Martingale-type behavior and may trigger risk controls or account limitations.
Strategies that rely on progressively increasing position size to recover losses are incompatible with environments that operate under defined loss limits. Trading approaches must remain aligned with controlled and sustainable risk management at all times.
Reverse Trading
Reverse trading, whether conducted between different proprietary trading firms or internally between multiple Moneta Funded accounts, is strictly prohibited.
Upon detection of reverse trading activity, Moneta Funded reserves the right to shut down the trader's account and ban the trader from future use of Moneta Funded's services.
High Frequency Trading
High-Frequency Trading (HFT) refers to trading patterns that rely primarily on extremely short holding times, rapid order placement, or execution speed rather than genuine market direction or strategy. This may include automated or manual strategies designed mainly to exploit latency, price feed differences, or execution mechanics through very high volumes of rapid trades.
Short-term trading and scalping are permitted. Trades held for seconds or minutes as part of a legitimate discretionary or systematic strategy are considered normal trading activity. However, trading behavior that consistently involves extremely short-duration trades executed in very high frequency, or strategies built primarily around execution speed rather than market analysis, may be classified as HFT and may trigger risk controls or account limitations.
These restrictions exist to prevent unfair execution advantages, excessive system load, or trading patterns that are not consistent with genuine market participation. All trading activity should reflect a genuine trading strategy with reasonable execution and risk management.
Grid Trading
Grid Trading or Hedging is a trading approach where opposing buy and sell orders for the same instrument are strategically placed to achieve equivalent or similar risk. This strategy carries the risks of market manipulation, excessive leveraging, market instability, and the potential for a risk-free simulated profit.
Latency Arbitrage Trading
Latency Arbitrage Trading involves employing a data stream intentionally designed to have a delay or lag in providing market data, such as stock prices or trading volumes. This grants an unjust advantage to the trader compared to others who must rely on real-time market data.
Employing Latency Arbitrage is deemed unethical and runs contrary to the ways in which legitimate financial markets function.
General Exploitation of a Demo Environment
While Latency Arbitrage Trading is one of the most frequented methodologies utilized to exploit demo environments, it's not the only way traders can exploit a demo environment in order to make unethical gains that wouldn't otherwise be possible within legitimate financial markets. That is, traders can also take advantage of glitches that arise within a demo environment rather than reporting the glitch taking place.
For example, if the demo feed suddenly stops at 2:00 price while at the same time allowing a trader to place trades locked in at the 2:00 price and consistently clicks back to where the feed should be 5 min later, if the trader looks at the other charts that don't contain a bug and places a trade on that exact 5 min window to exploit the glitch (as opposed to reporting the bug), this type of behavior would also be deemed a general exploitation of a demo environment.
Moreover, general exploitation of a demo environment violates our Terms & Conditions and will result in a trader's account being canceled as well as banning that trader from future use of Moneta Funded's services.
Account Sharing
Traders are prohibited from sharing accounts or transferring Simulated Funded Accounts from one owner to another for any purpose.
Engaging in account sharing and selling accounts is strictly forbidden and will promptly lead to a violation of your account(s), resulting in a ban from our services.
Expert Advisors (EAs)
At Moneta Funded, Expert Advisors(EA) are allowed only on trading accounts owned by the same individual.
A trader may use an EA if:
It is a copy-trading tool used solely to copy trades between the trader accounts, or
It is a custom EA developed and owned by the trader
The use of third-party EAs, commercially distributed EAs, and signal services is not permitted. Moneta Funded reserves the right to review EA activity and request verification of ownership and usage. Accounts found using unauthorized EAs may be subject to profit adjustment or account action in line with our Terms and Conditions.
Copy Trading.
At Moneta Funded, Copy Trading is allowed only between accounts owned by the same individual.
For full details, please refer to our Copy Trading Policy.
News Trading.
Moneta Funded does not allow traders to engage in news trading across all accounts (evaluation & funded)
For full details, please refer to our News Trading Policy.
Please note that during any time trading with Moneta Funded, our admin team has the right to vet any trader's trading behaviors to determine whether or not a prohibited trading style was utilized that fails to follow sustainability and prudent risk management. If a prohibited trading style is discovered to be utilized on any specific trader's associated accounts, Moneta Funded reserves the right to inform the trader that prohibited trading style was utilized and ban the trader from partnering with Moneta Funded on future trade endeavors.
On the occasions where prohibited trading styles are discovered during our internal review process, Moneta Funded also reserves the right to not reveal the specific behaviors discovered during our vetting process as this could indirectly lead to promoting development of workarounds to exploit our firm's policies and restrictions that ensure traders are engaged in disciplined and sustainable risk management. Furthermore, traders engaged in prohibited trading styles will be subjected to our no refund policy.