TradeDay Update
TradeDay has recently undergone a comprehensive review of its trading policies, resulting in a significant update.
Can you scalp on TradeDay?
Yes, you can scalp on TradeDay, but there are specific scalping practices that are not allowed. If you see yourself as a scalper, it’s important to understand the following information.
What to avoid on TradeDay:
- Using automated trading systems designed for very frequent scalping.
- Employing strategies that generate more than 200 trades per day.
Please note that if traders are found to have violated these rules during the evaluation process, TradeDay has the right to withhold funding without offering refunds.
Understanding scalping:
Scalping involves making many quick trades in a short time to earn small profits. Scalpers set narrow stop-loss orders and aim for quick gains by entering and exiting trades rapidly.
TradeDay has concerns about scalping because it may seem profitable in simulated trading but becomes challenging in live markets. Simulated trading algorithms are more generous with fills, providing quick fills for limit orders and less slippage for stop-loss orders, which differs from real market conditions.
Traders using scalping to pass the evaluation can use simulated trading systems. However, when they start trading live, they often face losses.
It’s important to consider that professional Trading Groups, equipped with advanced trading engines and low latency, also compete for quick, low-risk scalping in the same timeframe. These groups invest significant resources and benefit from reduced commission costs, making it harder for individual traders to consistently profit from scalping strategies.
Before deciding on scalping, carefully assess if it aligns with your trading goals and risk tolerance.
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Also, be sure to check out our comprehensive review of TradeDay
