Summary
MegaTrader funds disciplined, consistent traders using sustainable strategies. To keep risk controls fair and transparent across all programs (Elite, Growth, and Funded), we enforce strict rules on hedging and on mixing micro vs. mini futures contract sizes.
Hedging Policy (100% Prohibited)
In short, hedging is not allowed—at all, in any account.
Definition: Hedging means entering opposing positions (long and short) on the same or correlated instruments at the same time, whether to offset exposure, “test” direction, or game evaluation metrics. This undermines real risk assessment and trader consistency.
Examples of prohibited hedging
Long ES while short MES simultaneously
Opening both a buy and a sell on NQ at the same time
Using one position specifically to offset risk in another (e.g., CL vs MCL, GC vs MGC)
Why do we ban it
Does not reflect real-world capital risk behavior
Can exploit a simulated evaluation environment
Distorts performance metrics and breaks consistency
Micros vs. Minis: One Instrument Size at a Time
To prevent risk model gaming and keep performance consistent, you may not trade micros and minis at the same time in the same account.
Choose one contract size per account:
✅ Trade only micros (e.g., MES, MNQ, MCL, MGC)
✅ Trade only minis (e.g., ES, NQ, CL, GC)
❌ Do not open or hold both sizes simultaneously in the same account
How We Monitor
We use automated detection and compliance review to flag:
Opposing or contradictory positions (hedging)
Cross-instrument exposure that effectively offsets (e.g., ES long + MES short)
Mixed contract sizing held simultaneously (NQ + MNQ, CL + MCL, etc.)
Microscalping Rule (10-Second Standard)
No more than 50% of your current account profit may come from trades held for 10 seconds or less. To remain in compliance, the profit generated from trades held under 10 seconds must be less than half of your current realized account profit.
This rule is enforced continuously and applies in all market conditions, including news events and session opens/closes, and applies equally to all contract sizes (micro or mini).
This rule is designed to protect traders from unintentional fast exits or quick risk adjustments. However, intentional behavior or repeated patterns of sub-10-second trades will be considered a scalping violation, even if the trader remains near the threshold. Deliberate microscalping activity may result in payout denial or account termination.
Example (Not Compliant):
Current Account Profit: $2,000
Profit from Trades Held Under 10 Seconds: $1,050
Calculation: $1,050 ÷ $2,000 = 52.5%
Result: Not Compliant — because more than 50% of the account profit came from trades held under 10 seconds.
To remain compliant, profit from trades held under 10 seconds must remain below 50% of the current account profit.
Violations & Consequences
Depending on severity and frequency, consequences may include disqualification (evaluation accounts), payout denial for the affected period (Sim Funded), compliance holds, account closure, and/or removal from future programs.
Quick FAQ
Can I hedge across two different MegaTrader accounts?
No. Hedging is prohibited across any accounts owned or controlled by you.
Can I switch from micros to minis later?
Yes—just not simultaneously. Close all positions of one size before opening the other.
What counts as “correlated”?
Major/mini pairs (ES/MES, NQ/MNQ, CL/MCL, GC/MGC) and other instruments whose prices typically move together in ways that offset risk.
Does closing one side within seconds make it okay?
No. Opening opposing positions—even briefly—qualifies as hedging and is not allowed.
Need Help?
If you have questions about approved instruments, risk limits, or trading practices, contact us at [email protected] or open a live chat inside your portal.