Are hedging and grid trading permitted?

Trading strategies are evaluated not only on profitability, but also on fairness, transparency, and responsible risk management. For this reason, specific rules apply to the use of hedging and grid trading strategies during both the evaluation phase and on funded accounts.

Hedging within a single account is permitted. Traders may open and reverse positions on the same asset within the same account as part of a legitimate risk management or strategy adjustment process. For example, a trader may temporarily hedge exposure to manage volatility, lock in gains, or protect against short-term market movements. When used responsibly and within the firm’s risk parameters, this type of hedging is allowed.

Hedging across multiple accounts is strictly forbidden. This includes opening opposing positions on the same or correlated instruments across different accounts, whether owned by the same trader or shared across networks or IPs. Cross-account hedging can be used to artificially reduce risk, manipulate outcomes, or exploit system mechanics, which undermines the fairness of the evaluation process.

Grid trading, which involves placing multiple buy and sell orders at predefined price intervals, is not permitted. While grid strategies may appear systematic, they often rely on excessive exposure, martingale-style risk, or structural exploitation of market behavior. These practices can create market imbalance and conflict with Capital Chain’s risk management principles.

As a result, multiple grids, layered order structures, and system-exploiting strategies are prohibited, regardless of whether they are used intentionally or automatically.