As technology continues to advance, automated trading strategies, bots, and algorithms are increasingly common tools for traders seeking efficiency and precision in the markets. Purdia Capital recognizes the value of these technologies in enhancing trading strategies. However, to ensure fairness, maintain trading integrity, and mitigate risks, it is essential that traders adhere to our guidelines for using automated or semi-automated trading systems in any of our trading accounts. This policy outlines the permissions, limitations, and responsibilities for using trading bots and automated trading strategies on our platform.
Permissible Use of Semi-Automated Trading
Semi-automated trading, where traders use software to assist with certain aspects of trading (e.g., order entry, risk management), is permitted. However, traders must remain actively involved in overseeing the trading activity. Traders must understand the logic, functionality, and risk parameters of the semi-automated tools they use. Any partial automation must still be manually managed by the trader. Traders are required to monitor trades continuously to ensure compliance with platform rules and to address any unexpected behaviors in the semi-automated strategy.
Trade copiers fall within this permissible use policy, provided that traders actively monitor their entries and trades.
Prohibited Use of Fully-Automated Trading
Full automation, defined as any system or strategy that places trades without human intervention (hands-off trading), is strictly forbidden. Continuous 24/7 or “set-and-forget” strategies that execute trades without active, real-time management are not allowed. Strategies that require no trader input once activated are not compliant with this policy.
Our Commitment to Traders
At Purdia Capital, we prioritize consistency, strategy development, and risk management as key components of successful trading. Fully automated trading—using bots or algorithms to trade without human intervention—introduces challenges that can compromise these goals. Here are a few key reasons why we do not allow fully automated trading:
Risk Management and Control: Automated strategies can lead to rapid, unexpected losses, especially during volatile market conditions or unexpected news events. By requiring manual oversight, we ensure traders are consciously managing their trades and adjusting based on real-time market conditions.
Strategic Development: We believe in supporting traders to develop their skills and make thoughtful decisions, which is less achievable with fully automated systems. Manual trading helps traders learn to evaluate risk, adapt strategies, and understand their own trading strengths and weaknesses.
Systemic Risks and Technical Failures: Fully automated trading is susceptible to technical issues, from connectivity loss to system errors, which can quickly lead to significant losses. This lack of control is a risk to both the trader and our firm.
Account Integrity: Our funding model relies on transparency and accountability, ensuring we can confidently assess a trader’s strategy, style, and performance. Fully automated systems can obscure this evaluation, making it challenging to differentiate genuine skill from high-risk automation.
For these reasons, we only support trading approaches that include active, mindful trader involvement. This approach ensures a safer and more sustainable path for traders and Purdia Capital alike.
Trader Responsibilities
Traders are responsible for setting up and maintaining their own semi-automated systems. Purdia Capital does not provide support for strategy configuration, software integration, or troubleshooting technical issues. Traders should ensure they have the technical knowledge to address any operational issues and to manage the trading bot independently. Traders are expected to understand any limitations or constraints of their chosen automated system, as well as the data and risk metrics provided by the trading platform.
Risk and Accountability
Traders assume full responsibility for all trades placed by their automated or semi-automated systems, including those due to unintended strategy behavior or software malfunctions. Purdia Capital will not make exceptions for errant trades or account violations resulting from automated trading errors, glitches, or unexpected market conditions.
Policy Enforcement and Penalties
Purdia Capital monitors trading activity to ensure compliance with this policy. Traders found using unauthorized full automation may face disciplinary actions, including warnings, suspension, or account termination.
Any account that experiences significant issues or policy violations due to automated strategy malfunctions will be reviewed. Violations may result in immediate removal from the account, with no exceptions or waivers for rule breaches caused by automation.
Best Practices for Using Automated Strategies
Traders should rigorously backtest and paper trade their strategies before deploying them in a live or funded environment. This helps to identify any potential issues and ensure compatibility with platform rules. Regularly review the performance and parameters of any semi-automated system. Be prepared to make adjustments to adapt to changing market conditions and platform requirements. Semi-automated strategies should include robust risk management controls, such as stop-loss orders and risk limits, to protect against significant losses.
Disclaimer
Purdia Capital is not liable for any losses, account issues, or operational difficulties arising from the use of automated or semi-automated trading systems. Traders are responsible for understanding and managing their systems, and must bear any consequences of using such technology within any Purdia Capital Account.
By using a semi-automated trading strategy, traders acknowledge and agree to abide by this policy and accept full responsibility for the risks and obligations associated with their use.
