Basic Trading Strategies Allowed at Rhodium FX

One of the most common questions we get from traders starting a challenge is simple: what am I actually allowed to do? Here’s a clear breakdown of the trading styles Rhodium FX supports, and the practices our Terms of Use don’t permit, so you can build your strategy with full confidence before you place your first trade.

Strategies You Can Trade

Trend Following and Swing Trading. Positioning with the broader market direction and holding trades over hours, days, or longer is fully supported. This is one of the most natural fits for our rule structure, since it doesn’t require rapid order execution or high trade frequency to be effective.

Day Trading. Opening and closing positions within the same trading day is allowed, provided every trade respects the 2% per-trade risk cap and includes a stop loss and take profit, as required under our rules.

Manual Scalping. Shorter-timeframe trading is permitted, as long as it’s manually executed with genuine analysis behind each entry. This is different from what our Terms classify as prohibited High-Frequency or Tick Scalping, covered below.

What’s Not Permitted

Our Terms of Use are built to keep the trading environment fair and to reward traders who manage real risk with real decision-making. The following are prohibited on both evaluation and funded accounts:

High-Frequency or Tick Scalping. Strategies defined by extremely short holding times, excessive order messages, or bot-like execution speed are not allowed. This is distinct from manual short-timeframe trading, the issue is trade frequency and automation-style execution, not simply trading on a short timeframe.

Arbitrage. Latency, gap, triangular, long-short, or cross-broker arbitrage, along with any strategy that exploits data or execution discrepancies, is prohibited.

Hedging. Opening opposing positions on the same symbol, whether within one account or across accounts, is not permitted.

Expert Advisors and Automation. The use of EAs, bots, trade copiers, or API-based automation is prohibited. Every trade must be placed manually by the account holder.

Copy Trading and Account Sharing. Mirroring another trader’s positions, signal copying, or sharing/renting your account to someone else is not allowed.

Risk Rules That Apply to Every Strategy

Regardless of which allowed strategy you choose, a few rules apply across the board:

2% per-trade risk cap, applied uniformly across all permitted instruments including forex, gold, silver, and indices
Maximum two simultaneous open positions across all instruments and accounts at any time
Stop loss and take profit required on every trade
Restricted trading window around high-impact news, meaning you cannot open or modify positions 15 minutes before and 5 minutes after major news events. You’re permitted to close trades or reduce risk during this window, just not open new speculative positions

Why These Rules Exist

None of these restrictions are arbitrary. They’re designed to keep the evaluation and funded environment reflective of real, sustainable trading, the kind that holds up over months, not just a single lucky session. A trader who builds a strategy around trend following, disciplined day trading, or manual short-term setups, all within the 2% risk cap and two-position limit, is trading the exact style Rhodium FX is built to reward.

Putting It Into Practice

If you’re still deciding on a strategy, start with trend following or swing trading. It naturally fits within our risk structure and doesn’t require split-second execution to be profitable. From there, you can layer in day trading or manual scalping as your comfort with the rules grows.

For the complete list of rules, including leverage, drawdown limits, and payout requirements, read our full Terms of Use, or see our full challenge breakdown for how these rules tie into fees, profit splits, and payouts.