Hyperscalping Policy

Purpose of This Policy

TradeMakers prohibits hyperscalping as a primary or systematic profit-generation strategy.

This policy is designed to prevent trading strategies that rely predominantly on extremely short holding periods, while recognizing that legitimate trading and responsible risk management may occasionally require a trader to exit a position within 60 seconds.

A trade being held for less than 60 seconds does not, by itself, automatically constitute a policy violation or result in account termination. TradeMakers evaluates the trader's overall trading activity and the source of the account's profitable trading activity.

Definition of Hyperscalping

For purposes of this policy, a trade, or qualifying portion of a trade, that is opened and closed within 60 seconds may be classified and flagged as hyperscalping activity.

TradeMakers may consider factors including:

• Holding duration
• Position size
• Percentage of the position closed within 60 seconds
• Realized profit generated from the position
• Frequency of short-duration trades
• Scaling and partial-exit behavior
• Overall trading patterns
• Whether the activity appears intentionally structured to circumvent this policy

A trade being flagged for hyperscalping does not necessarily mean the account has violated this policy. Flagged activity will be evaluated under the standards described below.

Partial Position Closures

The 60-second requirement applies to the economic substance of the position, not simply whether some portion of the original position remains open beyond 60 seconds.

If a trader closes more than 50% of the original position within 60 seconds, the portion closed within 60 seconds may be classified as hyperscalping activity even if the remaining position is held beyond the 60-second threshold.

Example

A trader enters a position with a total notional value of $100,000. The trader closes $75,000 of that position after 40 seconds and leaves the remaining $25,000 open for several minutes.

The fact that 25% of the original position remained open beyond 60 seconds does not automatically make the entire trading activity compliant. The $75,000 portion closed within 60 seconds may be classified as hyperscalping activity, and the realized profits attributable to that portion may be included in the trader's Hyperscalping Profit Percentage.

This provision prevents traders from intentionally leaving a small portion of a position open beyond 60 seconds solely to circumvent the policy.

Stop Losses and Legitimate Risk Management

TradeMakers recognizes that legitimate trading sometimes requires positions to be closed within 60 seconds.

Examples may include:

• A stop loss being triggered shortly after entry
• Manually cutting a losing position to control risk
• Sudden adverse market movement
• An entry or trading setup becoming invalid shortly after execution
• Reducing exposure in response to changing market conditions
• Other reasonable risk-management decisions

Accordingly, an individual trade lasting less than 60 seconds will not, by itself, result in account termination.

Short-duration losing trades may be flagged by TradeMakers' monitoring systems but do not contribute to gross realized trading profits for purposes of calculating the 80% Hyperscalping Profit Threshold.

This policy is intended to identify traders who systematically generate their profits through hyperscalping, not traders who occasionally exit positions quickly as part of legitimate risk management.

Gross Realized Profit Calculation

TradeMakers determines hyperscalping violations based on the percentage of an account's gross realized trading profits generated from hyperscalping activity.

The calculation is:

Hyperscalping Profit Percentage = Gross Realized Profits from Hyperscalping Activity ÷ Total Gross Realized Trading Profits × 100

For purposes of this calculation:

• Gross Realized Profits from Hyperscalping Activity means realized positive P&L generated from trades, or qualifying portions of trades, classified as hyperscalping.
• Total Gross Realized Trading Profits means the sum of realized positive P&L generated by profitable trading activity during the applicable review period.

Trading losses are not deducted from gross realized profits when calculating this percentage. Accordingly, losses from hyperscalping trades or any other trading activity cannot be used to reduce or offset the amount of gross profits generated through hyperscalping.

Example of the 80% Calculation

Assume an account generates total gross realized trading profits of $10,000, of which $8,500 is gross realized profits from hyperscalping activity.

$8,500 ÷ $10,000 × 100 = 85%

The trader therefore generated 85% of their gross realized trading profits from hyperscalping activity. Because this exceeds the 80% threshold, the account would be in material violation of the TradeMakers Hyperscalping Policy.

80% Hard Violation Threshold

If 80% or more of an account's gross realized trading profits are generated from hyperscalping activity, the account will be considered in material violation of this policy.

Once the 80% threshold is met or exceeded, the violation may result in immediate account termination and forfeiture of all unpaid profits associated with the account.

The 80% determination is based on the source of the account's gross profitable trading activity, rather than simply the number or percentage of trades held for less than 60 seconds.

For example, an account may have multiple trades lasting less than 60 seconds because stop losses were triggered. Those trades alone would not cause the account to violate the 80% threshold if they did not generate qualifying hyperscalping profits.

Conversely, an account where the overwhelming majority of gross realized profits consistently comes from positions, or qualifying portions of positions, closed within 60 seconds may violate this policy even if other trades are held for substantially longer periods.

Anti-Circumvention

Traders may not structure orders, position sizes, partial exits, accounts, or trading activity for the purpose of artificially bypassing the 60-second requirement.

TradeMakers evaluates the economic substance and overall pattern of trading activity, rather than relying solely on whether an individual order technically remained open beyond 60 seconds.

Circumvention may include, but is not limited to:

• Closing the majority of a profitable position within 60 seconds while leaving a smaller portion open beyond 60 seconds
• Repeatedly scaling out of substantial portions of positions before the 60-second threshold
• Leaving a nominal position open solely to create an artificial holding period exceeding 60 seconds
• Splitting a position across multiple orders to disguise the effective holding period
• Using multiple accounts or instruments to replicate an otherwise prohibited hyperscalping strategy
• Repeatedly structuring entries and exits in a manner designed primarily to avoid classification under this policy

Where TradeMakers determines that trading activity has been intentionally structured to circumvent this policy, the underlying activity may still be classified as hyperscalping.

Policy Enforcement

TradeMakers may review trading activity when its monitoring systems identify potential hyperscalping behavior.

The review may consider the account's:

• Trade history
• Execution timestamps
• Position sizes
• Partial entries and exits
• Realized P&L
• Holding periods
• Order patterns
• Percentage of gross realized profits attributable to hyperscalping
• Overall pattern and economic substance of trading activity

The existence of individual trades held for less than 60 seconds does not automatically establish a violation.

The primary hard threshold under this policy is whether 80% or more of the account's gross realized trading profits were generated from hyperscalping activity.

Summary

The purpose of this policy is to allow traders to manage risk responsibly while ensuring that hyperscalping is not used as the primary profit-generation strategy on TradeMakers accounts.