TLDR: No, FundedNext does not allow High-Frequency Trading (HFT) due to its impact on market integrity, system performance, and platform fairness. Engaging in HFT may result in warnings or permanent account suspension.
What is High-Frequency Trading (HFT)?
High-Frequency Trading is an advanced trading strategy that uses powerful algorithms and ultra-fast network connections to execute a massive number of trades within milliseconds. It is designed to profit from tiny market inefficiencies by flooding the market with trades in a very short time.
Why HFT is Not Allowed at FundedNext
While HFT may sound attractive for its fast-paced gains, FundedNext prohibits this strategy for several important reasons:
Market Manipulation Risk:
HFT can generate artificial trading activity, creating false impressions of demand or supply. This misleads other traders and disrupts genuine market flow.
System Overload:
HFT typically involves hundreds or thousands of trades in seconds, putting immense pressure on FundedNext’s servers, potentially causing technical lags or freezing.
Market Instability:
The excessive volume and speed of HFT orders may cause erratic price swings, creating confusion and uncertainty for manual and retail traders.
Unfair Advantage:
HFT relies on technological superiority and speed, giving certain traders an unfair edge. This goes against FundedNext’s mission of offering a fair and equal trading environment.
HFT vs. Hyperactivity: What’s the Difference?
FundedNext recognizes the difference between Hyperactivity and High-Frequency Trading, but both are monitored and penalized if misused:
Hyperactivity involves repeated trades within short intervals that may raise system or strategy abuse flags.
HFT is the extreme form of hyperactivity using automated bots or EAs at lightning speed.
Important:
If a trader is first warned for hyperactivity and later engages in HFT, or vice versa, it can lead to a severe penalty, including account suspension. Warnings are cumulative.
Conclusion
At FundedNext, we prioritize a stable, transparent, and fair trading ecosystem. HFT strategies, although legal in some platforms, go against the ethical and operational guidelines we maintain.
If your strategy involves rapid trades, excessive order frequency, or automated high-speed bots, it’s likely to be flagged. Always review our Prohibited Strategies to avoid breaches.