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TakeProfitTrader Rule 6: No Counter Positions Policy

Written by Paul

Published on

January 6, 2026

TakeProfitTrader's Rule 6 prohibits holding opposite positions across multiple accounts simultaneously—meaning if you're long 2 ES contracts in PRO Account #1, you cannot be short any ES contracts in PRO Account #2 at the same time.

This rule applies to all account combinations (Test-to-Test, Test-to-PRO, PRO-to-PRO) and exists to prevent hedging strategies that effectively eliminate market risk while still collecting evaluation profits or funded account withdrawals. Violation triggers immediate account liquidation of the offending position with all profits forfeited and accounts locked pending review, potentially resulting in permanent termination from the program if TPT determines intentional rule circumvention.

The rule enforcement is automated through backend monitoring systems that detect counter positions within seconds of execution, and there are no grace periods or warnings—making it critical to understand how copy trading, EA-based strategies, and manual position management must be configured to avoid accidental violations when scaling to multiple accounts.

Quick heads-up: This article is based on my real experience with TakeProfitTrader and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check TakeProfitTrader´s website or their knowledge base.

What Rule 6 Actually Prohibits

Simple definition:

You cannot hold long and short positions in the same product across different accounts at the same time.

Prohibited example:

9:30 AM: PRO Account #1 goes long 1 ES at 5,000
9:32 AM: PRO Account #2 goes short 1 ES at 5,005

Result: Rule 6 violation. Both accounts locked and liquidated.

Why this is prohibited:

You've eliminated market risk:

If ES goes up, Account #1 profits
If ES goes down, Account #2 profits
You can't lose, which defeats the purpose of trading evaluation

What Rule 6 DOES Allow

Allowed: Same direction across accounts

9:30 AM: PRO Account #1 goes long 2 ES
9:32 AM: PRO Account #2 goes long 3 ES
9:35 AM: PRO Account #3 goes long 1 ES

Total: 6 ES long across 3 accounts = Compliant

Why this is allowed:

All accounts have the same directional risk. If ES drops, all accounts lose. No hedging.

Allowed: Different products

9:30 AM: PRO Account #1 goes long ES
9:32 AM: PRO Account #2 goes short NQ

Compliant? Yes. ES and NQ are different products, even though they're correlated.

Why this is allowed:

While ES and NQ move similarly, they're not identical. There's still risk.

Allowed: Time-offset positions

9:30 AM: PRO Account #1 goes long 1 ES
9:45 AM: PRO Account #1 exits (flat)
9:50 AM: PRO Account #2 goes short 1 ES

Compliant? Yes. The long position was closed BEFORE the short position opened.

Why this is allowed:

No simultaneous counter positions. Positions never overlapped.

How TPT Detects Rule 6 Violations

Automated monitoring system:

TakeProfitTrader's backend tracks:

Every open position across all your accounts
Product (ES, NQ, MES, etc.)
Direction (Long/Short)
Timestamp of entry
Account number

Detection logic:

IF Account #1 has Long ES AND Account #2 has Short ES THEN Trigger Rule 6 violation

Detection speed: Real-time (within 1-3 seconds of position opening)

Example scenario:

9:30:00 AM: Account #1 enters long 1 ES
9:30:15 AM: Account #2 enters short 1 ES
9:30:17 AM: System detects counter positions
9:30:18 AM: Both accounts liquidated, email sent

Total time from violation to liquidation: 18 seconds

What Happens When You Violate Rule 6

Immediate actions:

Position liquidation: Both counter positions closed at market
Account lock: Both accounts locked, cannot trade
Email notification: "Rule 6 violation detected. Accounts under review."
Profit forfeiture: Any profits from the violating trades are voided

Review period: 1-3 business days

Possible outcomes:

First-time violation (appears accidental):

Accounts remain locked
Must pay reset fee ($449-1,499 per account) to resume trading
Receive warning about future violations

Repeat violation or obvious intentional hedging:

Accounts permanently terminated
Banned from TakeProfitTrader
No refunds on subscriptions or reset fees

Appeal process:

You can email support explaining the situation. If you can prove it was accidental (e.g., copy trading misconfiguration), they may reduce penalty.

Copy Trading and Rule 6 Compliance

The challenge:

Copy trading typically replicates trades across all accounts. If you manually enter a hedge, the copy trading might replicate it incorrectly.

Example violation scenario:

You have 3 PRO accounts with copy trading enabled.

Your strategy: Trade long and short ES based on signals

Manual trade: You go long 1 ES on master account
Copy trading: Replicates long 1 ES on all 3 accounts ✓ Compliant

Problem occurs:

You manually hedge by shorting 1 ES on Account #2 to protect profits.
Copy trading: Now Account #2 has both long (from copy) AND short (from manual hedge) = Rule 6 violation

Solution: Use copy trading with "same direction only" setting

Most copy trading tools allow:

Replicate only long trades across all accounts
Replicate only short trades across all accounts
Ignore counter positions

Recommended setup:

All accounts copy the same direction. If your strategy flips from long to short, ensure all accounts flip together.

For copy trading rules: https://proptradingvibes.com/blog/takeprofittrader-copy-trading-rules

Multiple Account Strategies That Comply with Rule 6

Strategy 1: Synchronized Directional Trading

All accounts trade the same direction simultaneously.

Master account: Long 1 ES
Account #2: Long 1 ES
Account #3: Long 1 ES

Benefit: Simple, no risk of Rule 6 violation

Drawback: If you're wrong, all accounts lose

Strategy 2: Different Products Per Account

Diversify across uncorrelated products.

Account #1: Trade ES (S&P 500 futures)
Account #2: Trade CL (Crude Oil futures)
Account #3: Trade GC (Gold futures)

Benefit: No counter position risk since products are different

Drawback: Requires expertise in multiple markets

Strategy 3: Time-Offset Trading

Trade sequentially, not simultaneously.

9:30 AM: Account #1 enters long ES, holds 30 minutes, exits
10:15 AM: Account #2 enters short ES, holds 30 minutes, exits
11:00 AM: Account #3 enters long ES

Benefit: No simultaneous counter positions

Drawback: Slower scaling, can't compound gains as quickly

Strategy 4: Single Active Account Per Session

Trade one account per day, rotate.

Monday: Trade only Account #1
Tuesday: Trade only Account #2
Wednesday: Trade only Account #3

Benefit: Zero risk of Rule 6 violation

Drawback: Underutilizes capital (not all accounts active)

Common Rule 6 Violation Scenarios

Scenario 1: Manual hedge gone wrong

You're long ES in Account #1. Price moves against you. You panic and short ES in Account #2 to "protect" Account #1.

Result: Rule 6 violation. Both accounts liquidated.

What you should do: Exit Account #1 position first, then enter short in Account #2 if desired.

Scenario 2: EA/Bot creates counter positions

You run an automated strategy. Bot enters long ES in Account #1 based on signal. 2 minutes later, different signal triggers short ES in Account #2.

Result: Rule 6 violation.

Prevention: Configure bot to check all account positions before entering new trades. If any account has opposite position, skip trade.

Scenario 3: Copy trading with manual override

Copy trading has all accounts long ES. You manually short ES in one account without disabling copy trading.

Result: That account now has both long (from copy) and short (manual) = Rule 6 violation

Prevention: Disable copy trading before entering manual trades, or only use copy trading for entry and manage exits manually.

Scenario 4: Weekend positions carried into Monday

Friday 3:00 PM: Account #1 long ES (held over weekend)
Monday 9:30 AM: You forget Account #1 is still long, enter short ES in Account #2

Result: Rule 6 violation

Prevention: Use a checklist or dashboard showing all open positions before entering any new trades.

Rule 6 vs Self-Match Prevention (SMP)

Rule 6 (TakeProfitTrader's rule): No counter positions across accounts

Self-Match Prevention (CME rule): Your orders can't fill against your own orders

Key difference:

Rule 6 is about position direction (long vs short). SMP is about order matching.

Can you violate both?

Yes. If you place a buy order in Account #1 and sell order in Account #2 simultaneously in PRO+:

SMP prevents orders from matching with each other (CME level)
Rule 6 triggers violation for counter positions (TPT level)

For SMP details: https://proptradingvibes.com/blog/takeprofittrader-pro-plus-smp-guide

How to Monitor for Rule 6 Compliance

Manual tracking:

Create a spreadsheet:

AccountProductDirectionQuantityEntry TimePRO #1ESLong29:30 AMPRO #2ESLong19:32 AMPRO #3NQShort39:35 AM

Check before every trade: Do I have opposite position in this product on another account?

Automated tracking:

Some third-party tools can monitor multiple accounts and alert you if you attempt to enter counter position.

Best practice: Set up a dashboard showing all open positions across all accounts in real-time.

Bottom Line

TakeProfitTrader's Rule 6 prohibits holding long and short positions in the same futures product across multiple accounts simultaneously, enforced through automated backend monitoring that detects violations within 1-3 seconds of position execution and triggers immediate liquidation of both counter positions with accounts locked pending review.

Compliant strategies include synchronized directional trading where all accounts enter the same direction together, trading different products per account (ES in Account #1, CL in Account #2), time-offset position management where opposing positions never overlap, or rotating active accounts daily to eliminate simultaneous trading. Rule 6 violations result in position liquidation at market, profit forfeiture from violating trades, account lockouts requiring $449-1,499 reset fees per account, and potential permanent termination for repeat violations or intentional hedging.

Copy trading setups must be configured to replicate only same-direction positions while preventing manual overrides that create counter positions, and traders running 3-5 accounts need real-time position dashboards showing all open positions before entering any new trade. The rule exists to prevent risk-free hedging where traders profit regardless of market direction by having opposite positions across accounts—maintaining the legitimate trading evaluation that TPT's business model requires for sustainable funding of profitable traders.