At Verso Prop Firm, we aim to fund traders who operate in a professional, ethical, and sustainable manner. The following practices are strictly prohibited as they distort real risk, manipulate the evaluation system, or expose the firm’s capital to excessive danger. Engaging in any of these activities may result in immediate disqualification of the account, both during evaluations and on funded accounts.
1. Unethical Trading Strategies
Direct or indirect hedging: Opening opposing buy and sell positions on the same instrument or equivalent instruments to temporarily lock profits or reduce drawdown, preventing a fair evaluation of trading skill.
Hedging across multiple accounts: Using two or more accounts to open opposing positions in order to guarantee profits on at least one account, including the use of different IPs, devices, or identities.
Martingale or doubling down: Increasing position size after a loss in an attempt to recover losses quickly, exposing the account to exponential risk and severe drawdowns.
Grid trading: Placing multiple staggered orders across different price levels without a clearly defined stop-loss, accumulating exposure as price moves against the trader.
Averaging down: Adding new positions to an already losing trade to improve the average entry price instead of accepting the initial loss, ignoring proper risk control.
Hidden risk stacking: Opening multiple small positions simultaneously that, when combined, exceed permitted risk limits, even if each position appears acceptable on its own.
Excessive correlated exposure: Opening multiple positions in highly correlated instruments that amplify real account risk despite being traded as separate symbols.
Symbolic or manipulated stop-loss usage: Placing unrealistic or excessively wide stop-losses only to comply with rules, repeatedly moving them, or removing them to avoid automatic closures.
Floating drawdown abuse: Allowing trades to reach excessive floating losses while relying on a potential market reversal, even if the trade later closes in profit.
Aggressive news scalping / news sniping: Opening trades immediately before, during, or after high-impact economic events to exploit sharp price movements when such practices are not permitted.
Latency arbitrage and arbitrage strategies: Exploiting price feed delays, broker discrepancies, or technical inefficiencies to generate profits without genuine market risk.
High-Frequency Trading (HFT) or scalping bots: Using algorithms or bots to execute a large number of ultra-fast trades designed to exploit micro price movements without explicit authorization.
Trade masking: Splitting a large position into multiple smaller trades across different instruments or time intervals to conceal the true level of risk being taken.
2. Account and Evaluation Manipulation
Use of multiple accounts for hedging or averaging: Purchasing multiple challenges or accounts and copying, hedging, or offsetting trades between them to increase pass probability.
Account stacking: Combining results from multiple parallel accounts to artificially construct a winning performance profile, violating individual evaluation rules.
Account rolling: Purchasing challenges repeatedly and intentionally sacrificing some accounts while relying on probability to pass others.
Abusive resets: Repeatedly using resets as part of a rapid-attempt strategy rather than a genuine evaluation of trading performance.
End-of-evaluation risk increase: Significantly increasing trade size or trading frequency near the profit target or challenge expiration.
Simulated or fake consistency: Trading minimally throughout most of the evaluation period and then assuming excessive risk to reach the profit target.
Account sharing or selling: Sharing, selling, or transferring account access to another individual to trade on behalf of the original account holder.
Use of VPNs to bypass restrictions: Using VPNs or similar tools to conceal location, improve latency, or bypass geographic or account-related restrictions.
Exploiting bugs or technical glitches: Taking advantage of platform errors, incorrect order execution, or calculation issues to obtain unfair profits.
3. Unauthorized External Tools and Automation
Unauthorized copy trading: Copying signals or trades from external accounts, professional traders, or signal services to pass evaluations without independent decision-making.
Prop firm passing services: Paying third parties to trade challenges or funded accounts, either manually or via automated systems.
Prohibited Expert Advisors (EAs): Using automated trading systems designed for martingale, grid, hedging, arbitrage, or any other prohibited strategy.
4. Non-Professional Risk and Behavioral Practices
Overtrading for speed runs: Executing an excessive number of trades in a short period solely to reach the profit target quickly.
Revenge trading: Entering impulsive trades immediately after a loss in an attempt to recover losses rapidly, increasing overall risk exposure.
Gambling mentality: Treating challenges as a lottery by purchasing multiple low-cost accounts and relying on luck rather than skill.
Profit-target-only focus: Ignoring risk and drawdown management entirely while focusing solely on achieving the profit target.
At Verso Prop Firm, these rules are designed to protect capital and fund real, sustainable trading talent. Any attempt to manipulate risk, accounts, or the evaluation process will be treated as a serious violation of our terms.