1. Purpose

These guidelines ensure all trading activities in NexGen Futures Trader’s simulated environment closely mirror real market conditions, promoting fair competition and realistic preparation for live trading success.

2. General Principles

2.1 Traders must:

• Approach simulated trading with seriousness and the same ethical standards as live trading.
• Use the simulated environment for genuine learning and strategic development, explicitly avoiding exploitation.

2.2 NexGen Futures Trader will:

• Monitor trading activities regularly to ensure compliance.
• Maintain and update the simulation environment to reflect accurate real-world market conditions.

3. Prohibited Trading Behaviors

3.1 Micro-Scalping or Ultra Short-Term Trading

• Engaging in trading activity where positions are entered and exited within seconds or mere minutes, without a structured strategy based on market conditions.
• Attempting to generate profits primarily from minor fluctuations in the bid-ask spread rather than genuine directional price movements.
• Employing high-frequency trading (HFT) strategies that are impractical, infeasible, or not executable under live market conditions due to liquidity constraints, order execution latency, or exchange-imposed restrictions.

3.2 Overtrading

• Executing an excessive number of trades within short time frames in a manner that does not reflect sound risk management or a structured trading approach.
• Repeatedly using position sizes that would be impractical, excessively leveraged, or unsustainable in a live trading environment given actual market liquidity and margin requirements.

3.3 Exploiting Simulated Fills

• Seeking fills at prices that would be highly improbable or unachievable under actual live market conditions, including trading strategies that rely on execution advantages unavailable in real markets.
• Repeatedly placing and canceling orders with the intent to manipulate simulated order flow, test execution speeds, or exploit fill mechanisms in ways that would not be possible in a regulated live trading environment.

3.4 Risk Management Violations

• Deliberately ignoring predefined risk limits or engaging in trading activity that circumvents built-in risk management parameters designed to ensure responsible trading behavior.
• Continuously executing trades that exceed established position size or drawdown thresholds beyond reasonable risk tolerances, leading to high variance or excessive exposure.

3.5 Inconsistent Trading Patterns

• Drastically altering trading style, risk exposure, or position sizing without any fundamental or strategic justification, indicating a lack of consistency or sustainable trading discipline.
• Alternating between extreme trading behaviors, such as aggressively increasing risk exposure in short bursts followed by prolonged periods of ultra-conservative trading, which reflects a lack of a structured and repeatable trading methodology.

4. Proper Use of Trading Tools and Technology

4.1 Permitted Activities:

• Using standard trading platforms, charting software, and analysis tools.
• Developing and testing legitimate trading algorithms and strategies.

4.2 Prohibited Activities:

• Using or developing tools specifically designed to exploit the simulated environment.
• Attempting to reverse-engineer or manipulate the simulation’s underlying mechanisms.

5. Account Management and Reporting

5.1 Traders must:

• Manage simulated accounts responsibly, reflecting realistic position sizing and risk management.
• Accurately report trading performance without misrepresentation.

5.2 Prohibited Activities:

• Resetting or manipulating account statistics to conceal losses or performance issues.
• Creating multiple accounts to evade performance tracking or trading limitations.

6. Compliance and Enforcement

6.1 Authority and Enforcement Actions

NexGen Futures Trader retains the absolute and sole discretion to monitor, assess, and enforce compliance with these guidelines. This includes, but is not limited to:

• Conducting a thorough review of any trading activity suspected of violating NexGen’s simulated trading policies, including but not limited to activities that constitute manipulation, exploitation, or unethical trading behavior.
• Initiating investigations into trading patterns, order execution strategies, or trading behaviors that raise compliance concerns.
• Taking corrective action based on the findings of such reviews, which may include issuing formal warnings, applying trading restrictions, imposing temporary account suspensions, or permanently terminating accounts without prior notice, at NexGen’s sole discretion.

Decisions regarding enforcement actions are final, and NexGen Futures Trader is under no obligation to provide prior warning before taking action against accounts that have been found in breach of these guidelines.

6.2 Trader Obligations and Acknowledgments

All traders participating in NexGen Futures Trader’s simulated environment acknowledge and agree to the following conditions:

• They must fully cooperate in any compliance reviews, investigations, or inquiries conducted by NexGen regarding their trading activity.
• They understand and accept that NexGen’s determinations regarding compliance violations, enforcement actions, or penalties are final, binding, and not subject to appeal.
• They must adhere to all corrective actions or conditions imposed by NexGen as a result of compliance investigations, including modifications to trading permissions, performance evaluations, or account status changes.

Failure to comply with enforcement actions or refusal to participate in required compliance reviews may result in immediate account termination and forfeiture of any associated trading privileges.

7. Reporting and Feedback

7.1 Traders are encouraged to:

• Report any issues, anomalies, or suspected violations encountered in the simulation.
• Provide constructive feedback to enhance the simulated trading environment.

8. Updates and Amendments

8.1 These guidelines may be updated periodically to address:

• New challenges and evolving market conditions.
• Feedback from traders and industry professionals.
• Technological advances in trading and simulation accuracy.

8.2 Traders are responsible for:

• Staying informed about guideline updates.
• Adjusting trading behaviors promptly to comply with any updated guidelines.