ET Share | Since it can be profitable, why do most self-operated platforms restrict scalping transactions?

Today, when self-operated trading is popular all over the world, many traders will find that when checking the platform rules, most self-operated trading institutions will restrict scalping and high-frequency order brushing.

Since this type of trading method also has the opportunity to gain profits, why does the platform set up relevant rules specifically? In fact, this is not aimed at a certain trading style, but is related to the core goal of the proprietary trading assessment.

Today, we will take EagleTrader’s rules as an example to deeply analyze the reasons behind this rule and explore the core capabilities focused on in proprietary trading assessments.

What is “scalping and high-frequency brushing” trading?

In the EagleTrader user guide, this behavior is clearly defined:

Scalping/high-frequency brush trading (scalping is prohibited): Scalping refers to the trading behavior of frequently opening and closing positions within a very short period of time – its core intention is to take advantage of small price fluctuations for arbitrage, or to deliberately meet the promotion requirements for the number of independent transactions in a stage through artificial means.

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In addition, some traders will use very small positions to quickly open and close positions during the assessment stage to meet requirements such as the number of transactions or trading days. This type of behavior is also a high-frequency brush transaction within the limits of the platform.

Why does this kind of transaction run counter to the original intention of proprietary trading?

In fact, what the proprietary trading platform restricts is not the scalping/high-frequency brushing transaction itself, but the high-frequency brushing behavior for the purpose of completing assessment requirements. From the perspective of the operating logic of proprietary trading, there are certain differences between this type of trading model and the abilities that the assessment hopes to verify.

1. The proprietary trading assessment focuses on long-term stable trading capabilities

The purpose of establishing the assessment for the proprietary trading platform is to incubate traders with risk management capabilities, trading discipline and stable execution capabilities.

For the platform, one profit is not enough to prove trading ability, and more importantly, whether traders can continue to execute their strategies in different market environments and keep risks under control.

However, high-frequency order brushing behavior for the purpose of meeting assessment requirements cannot fully reflect traders’ comprehensive capabilities in fund management, risk control and strategy execution.

2. Ultra-short-cycle trading may not truly reflect strategy stability

Ultra-short-cycle trading usually relies more on transaction quality, market liquidity, spread changes, and execution environment. Under certain market conditions, this type of strategy may achieve good short-term performance; but when the market environment changes, its stability and sustainability need to be verified over a longer period of time.

For proprietary trading institutions, rather than the profit results at a certain stage, they pay more attention to whether the trading strategy has long-term execution capabilities and whether it can maintain consistent risk-return characteristics in different market environments.

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If the assessment requirements are allowed to be completed quickly through a large number of seconds in and seconds out, then the data obtained by the platform will more reflect the trading frequency, and may not fully reflect the trader’s trading ability.

Therefore, restricting high-frequency order fraud is not to increase the difficulty of the assessment, but to make the assessment results more objectively and fairly reflect the traders’ strategy level, execution ability and risk control ability.

What can the proprietary assessment bring to traders?

After understanding the logic behind the rules, it is not difficult to find that EagleTrader proprietary trading is not only a set of assessment mechanisms, but also a process for traders to verify and improve their own trading system.

For traders, participating in the assessment can mainly obtain the following values:

1. Verify the stability of the trading system

Many trading strategies perform well in the backtesting stage, but it is difficult to maintain consistent performance in the long term after entering the real market.

Through the assessment, traders can more objectively observe the performance of their strategies in different market environments, test their trading capabilities, and discover links in the trading system that need optimization.

2. Establish more mature risk management habits

For professional traders, risk control is always an important part of the trading system. The risk control rules, drawdown limits and account management requirements in the assessment can help traders gradually establishEstablish more standardized fund management habits to reduce the impact of emotional trading, heavy position trading and other behaviors on the account.

3. Obtain greater room for capital development

For many traders with trading capabilities, the scale of capital is an important limiting factor for further development.

The self-operated trading model provides traders with the opportunity to access a larger capital scale, allowing traders to devote more energy to strategy research and transaction execution without being completely limited by personal principal size.

In summary, the purpose of setting relevant rules for proprietary trading is not to restrict trading methods, but to guide traders to establish more mature trading habits during the assessment process.

When traders can continue to abide by trading disciplines, keep risks under control, and stably implement their own trading systems, the value brought by the assessment will be more than just a challenge, and obtaining greater financial support will become a matter of course.



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