TradeDay Algo Trading Rules: Bots and Automated Systems

Written by Paul

Published on

January 11, 2026

You have a profitable trading strategy and you want to automate it on TradeDay. Maybe you built an algo that trades NQ based on specific setups, or you want to use a commercial EA that's been working in sim, or you're just wondering if you can use copy trading software to scale across multiple accounts.

The question everyone asks: does TradeDay allow algorithmic trading and automation? The answer isn't a simple yes or no. Some automation is perfectly fine. Other types will get you permanently banned within 24 hours.

Quick heads-up: This article is based on my real experience with TradeDay 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 TradeDay´s website or their faq page.

I've seen traders get their funded accounts terminated because they were running bots that looked suspicious to TradeDay's monitoring systems — even though the traders weren't intentionally cheating. I've also seen traders successfully run legitimate algos on funded accounts for months without issues.

This is your complete breakdown of TradeDay's algo trading rules. What's allowed, what's prohibited, how they detect violations, and how to run automation safely without risking your account.

The Core Rule: No Exploiting the Simulation

TradeDay's platform (during evaluation and Funded Sim accounts) is a simulated trading environment. It's not direct market access — it's a broker simulation that mirrors real market conditions but doesn't route orders to actual exchanges until you upgrade to Funded Live.

The fundamental rule: You cannot use automation to exploit differences between TradeDay's simulation and real market conditions.

What "Exploiting" Means

Prohibited exploitation examples:

Using latency arbitrage to trade on delayed sim prices
Running algorithms that test for execution inconsistencies
Finding patterns in how the sim fills orders and exploiting them
Using ultra-high-frequency strategies that only work in sim environments
Running bots designed to game evaluation rules rather than predict market direction

Legitimate automation that's fine:

Algos based on technical indicators (RSI, moving averages, VWAP, etc.)
Order flow algorithms reading DOM data
News-based automated entries (outside Tier 1 restricted windows)
Automated stop loss and profit target management
Copy trading your own trades across your own accounts

The dividing line: Is your algo trying to predict market direction, or is it trying to exploit TradeDay's simulation mechanics?

What Types of Automation Are Allowed

Let's be specific about what TradeDay permits.

1. Personal Algorithmic Strategies

You can run your own custom-built algos as long as they're based on legitimate market analysis.

Examples of allowed personal algos:

Breakout system that buys when ES breaks above previous day high
Mean reversion strategy selling overbought and buying oversold
Order flow algo entering when bid/ask imbalance exceeds threshold
News-based strategy entering after economic data releases (outside Tier 1 windows)

Key requirement: Your algo must be based on predicting market direction, not gaming the evaluation system.

2. Platform-Based Automation

Built-in automation features from your trading platform are generally allowed.

Allowed platform automation:

NinjaTrader automated strategies (NinjaScript)
TradingView Pine Script strategies with auto-execution
Tradovate's bracket orders and OCO (one-cancels-other) orders
Automated stop losses and profit targets
Trailing stops that adjust automatically

These are standard features of professional trading platforms. TradeDay expects traders to use them.

3. Copy Trading (With Restrictions)

You can copy trades from one of YOUR TradeDay accounts to another of YOUR TradeDay accounts.

Allowed copy trading:

Software that replicates your Trade A on Account 1 to Account 2 and Account 3
Manual copying (you execute the same trade across multiple accounts yourself)

NOT allowed:

Copying trades from someone else's account to yours
Copying trades from an external source (another prop firm, a signal service)
Using commercial copy trading services that pool multiple traders

Critical restriction: You cannot hedge across accounts. If you're long on Account 1, you cannot be short on Account 2. That's a prohibited practice regardless of whether you're using automation or manual trading.

For complete details on hedging restrictions, see the prohibited practices guide.

4. Risk Management Automation

Automated tools that help you manage risk are welcomed.

Examples:

Position sizing calculators that auto-adjust contract quantity
Automated stop loss placement based on ATR or volatility
Risk-per-trade limiters that prevent oversizing
Drawdown monitors that stop trading if you approach limits

These tools help you follow TradeDay's rules more consistently, so they're encouraged.

What Types of Automation Are Prohibited

Here's what will get you banned.

1. Latency Arbitrage Bots

Any system designed to exploit timing differences between TradeDay's simulation and real market prices.

What this looks like:

Ultra-fast execution testing response times
Trading on price delays in the simulation
Exploiting order fill speeds that wouldn't exist in live markets

How TradeDay detects it: Sub-second execution patterns that don't make sense from a directional trading perspective. Win rates over 95% with no logical edge explanation.

2. Simulation Exploitation Algos

Bots specifically designed to find and exploit weaknesses in simulated environments.

What this looks like:

Running thousands of micro-trades to test fill algorithms
Finding patterns in how the sim processes orders vs real brokers
Exploiting execution guarantees that don't exist in real markets
Gaming the consistency rule or drawdown calculations

How TradeDay detects it: Trade patterns that look like system testing rather than market prediction. Repeated entries and exits with no clear strategy. Success rates that are statistically impossible in real trading.

3. Commercial Copy Trading Services

Using third-party services that copy trades from external sources.

What's prohibited:

Subscribing to signal services and auto-executing their calls
Using commercial platforms that pool trades from multiple sources
Copy trading from another trader's prop firm account

Why it's banned: TradeDay wants to fund YOUR trading skill, not someone else's. If you're just copying external signals, you're not demonstrating your own edge.

Exception: Copying your own trades across your own TradeDay accounts is fine.

4. Prohibited Software Platforms

Some commercial automation platforms are specifically banned.

Known prohibited platforms:

Certain forex EAs marketed for "prop firm challenges"
Copy trading services that explicitly advertise "pass prop firm evaluations"
Software designed to game consistency rules or drawdown calculations

TradeDay doesn't publish a comprehensive banned software list because they don't want to give these companies free advertising. But if software is marketed as "beat prop firm rules" or "guaranteed to pass evaluations," assume it's prohibited.

5. High-Frequency Trading (HFT) Strategies

Strategies executing dozens or hundreds of trades per day with sub-second hold times.

What's prohibited:

Scalping 50+ times per day with 1-5 second hold times
Running market-making strategies in a prop firm evaluation
Executing HFT strategies that only work with specific execution setups

Why it's banned: These strategies rarely work in real market conditions with actual slippage and commissions. They might work in TradeDay's sim environment but would fail with real broker execution.

What's allowed: Normal scalping with 2-10 minute hold times and 10-20 trades per day is fine. It's the ultra-high-frequency stuff that triggers flags.

How TradeDay Detects Prohibited Automation

Their monitoring systems look for specific red flags.

Detection Method #1: Win Rate Analysis

Legitimate trading strategies rarely exceed 70-75% win rates over meaningful sample sizes. If your algo is winning 90-95%+ of trades consistently, that signals potential exploitation.

What triggers review:

90%+ win rate over 30+ trades
Win rate that doesn't decline over time (most strategies regress to mean)
Perfect or near-perfect win rate on specific trade types

What's normal:

55-65% win rate for good strategies
60-75% win rate for excellent strategies
Some losing streaks mixed with winning streaks

Detection Method #2: Execution Pattern Analysis

Bots leave patterns that humans don't.

Red flags:

Identical entry times across multiple days (algo enters at 9:47:23 every day)
Perfectly spaced trades (enters every 17 minutes like clockwork)
No variation in position size (always exactly 2 contracts, never 1, never varying)
Trades that happen at impossible speeds (entry and exit in under 1 second repeatedly)

What's normal:

Slight variations in timing even with algo trading
Position sizing that adjusts to market conditions
Hold times that make sense for your strategy (minutes to hours, not seconds)

Detection Method #3: Statistical Probability Analysis

If your results are too good to be true statistically, you're getting reviewed.

Impossible results:

40 winning trades in a row with zero losers
Every trade profitable by $200-300 with no variation
Drawdowns that never exceed $100 on a $100K account over 50 trades

Realistic results:

Winning and losing trades mixed together
Occasional drawdown periods followed by recovery
Profit amounts that vary based on market movement

Detection Method #4: Strategy Logic Review

If your trading makes no logical sense, it triggers review.

Red flags:

Entering and exiting positions with no clear catalyst
Trading patterns that don't align with market structure
Success that has no explainable edge (technical, fundamental, or order flow based)

What's normal:

Entries that align with support/resistance, indicators, or order flow
Exits based on targets, stops, or time-based rules
Trading that makes sense when analyzed

Safe Automation: How to Use Bots Without Getting Banned

If you want to run algos on TradeDay, follow these guidelines.

Guideline #1: Test in Sim First

Before running any algo on your TradeDay evaluation, test it extensively in regular sim trading.

Testing checklist:

Run the algo for 30+ trades in sim
Verify it produces realistic results (60-70% win rate, not 95%)
Confirm it trades based on market conditions, not just time-based rules
Check that hold times are reasonable (minutes to hours, not seconds)

If your algo works in normal sim with realistic results, it'll likely pass TradeDay's monitoring.

Guideline #2: Avoid Perfect Patterns

Add slight randomness or variation to avoid robotic patterns.

How to add variation:

Vary position sizing slightly (1-2 contracts instead of always 2)
Add small time delays (don't enter at exactly 9:30:00 every day)
Use ranges for profit targets (exit between $400-500 instead of always $450)
Let market conditions affect entry timing

This makes your algo look more like human discretionary trading, which is less likely to trigger reviews.

Guideline #3: Document Your Strategy

If TradeDay asks about your trading approach, you should be able to explain your algo's logic clearly.

Be ready to explain:

What indicators or signals trigger entries
How your algo determines position sizing
Where stops and targets are calculated from
Why your hold times are what they are

If you can't explain your strategy coherently, that's a problem. Legitimate algos have clear logic. Exploitation bots don't.

Guideline #4: Monitor Results for Red Flags

Check your stats weekly to make sure they look realistic.

Watch for these warning signs:

Win rate creeping above 80%
No losing days for 2+ weeks
Perfect or near-perfect execution every single time
Drawdown always staying under $200 on a $100K account

If you see these, adjust your algo or stop using it before TradeDay flags you.

Guideline #5: Use Established Platforms

Stick to well-known platforms like NinjaTrader, TradingView, or Tradovate's built-in automation. Avoid obscure third-party software marketed specifically for "prop firm challenges."

Safe choices:

NinjaTrader strategies coded in NinjaScript
TradingView strategies using Pine Script
Tradovate's automated orders
Your own Python or C# scripts connected via API (if supported)

Risky choices:

Commercial EAs from random websites
Software advertised as "prop firm evaluation tools"
Platforms you can't find legitimate reviews for

Platform-Specific Automation Rules

Different platforms have different automation capabilities.

NinjaTrader Automation

NinjaTrader offers the most robust automation support TradeDay allows.

What you can do:

Code custom strategies in C# using NinjaScript
Use built-in strategy templates (MA crossovers, breakouts, etc.)
Backtest strategies before running live
Run multiple strategies simultaneously on different instruments

What to avoid:

Running commercially sold "black box" EAs without knowing what they do
Using strategies that execute 50+ times per day
Running strategies designed for other prop firms' specific rules

Setting up automation in NinjaTrader:

Go to Tools > Strategy Analyzer
Load or code your strategy
Backtest on historical data
Enable strategy on live chart connected to TradeDay
Monitor performance daily

TradingView Automation

TradingView's automation is more limited but still useful.

What you can do:

Create Pine Script strategies that auto-execute
Use alerts to trigger entries/exits
Run indicator-based strategies (RSI, MACD, etc.)

What to avoid:

Using other people's published strategies without understanding them
Running strategies that trade every 5 minutes
Relying on strategies that seem too good to be true in backtests

Setting up automation in TradingView:

Open a chart with your TradeDay connection active
Add your Pine Script strategy to the chart
Enable "Auto-execution" in strategy settings
Monitor trades through TradeDay dashboard

Tradovate Automation

Tradovate has basic automation but not full algorithmic trading.

What you can do:

Set up bracket orders (entry with stop and target)
Use OCO orders (one-cancels-other)
Create automated trailing stops
Set time-based order cancellations

What you can't do:

Run complex algorithms (Tradovate doesn't support this level of automation)
Backtest strategies in the platform
Use third-party scripts or plugins

Tradovate is best for semi-manual trading with automated risk management, not full algorithmic trading.

Copy Trading Across Your Own Accounts

This is allowed but has specific rules.

The Allowed Setup

You manually trade Account 1, and software replicates those trades to Account 2 and Account 3 automatically.

Requirements:

All accounts must be yours (same owner)
You cannot hedge (if Account 1 is long, Account 2 cannot be short)
Trades are copied, not independently generated

Recommended software:

Trade Copier for NinjaTrader
MT4/MT5 copiers (if connecting through supported platforms)
Custom scripts you write yourself

The Prohibited Setup

You subscribe to a signal service or copy trades from another trader's account.

What's NOT allowed:

Copying trades from a Telegram signal channel
Using a commercial service that sends trade alerts
Copying trades from another trader's prop firm account
Pooling trades from multiple sources

TradeDay wants each account to represent YOUR trading decisions, not someone else's.

What Happens If You Violate Algo Rules

The consequences depend on severity.

Minor First Offense

Example: Your algo accidentally trades 1 minute into a Tier 1 news window because you misconfigured the calendar.

Result: Warning email. Your trades might be reversed. Account flagged but not terminated.

Major First Offense

Example: You're running an HFT bot that trades 80 times per day with 95% win rate.

Result: Immediate account termination. All evaluation and funded accounts closed. No refunds. Possible permanent ban from creating new accounts.

Repeat Violations

Second violation of any automation rule typically results in permanent ban. You're not just losing the account — you're losing access to TradeDay entirely.

No Appeals Process

TradeDay's decisions on automation violations are final. If they determine you violated algo trading rules, there's no arguing your way back in.

This is why it's critical to understand these rules before running any automation.

Frequently Asked Questions

Can I use a commercial EA I bought online?

Maybe. If it trades based on legitimate technical analysis and produces realistic results, probably fine. If it's marketed as "guaranteed prop firm passer" or produces 90%+ win rates, it's prohibited.

What if my algo accidentally violates a rule?

If it's genuinely accidental (configuration error, not intentional exploitation), you might get a warning on first offense. But "I didn't know" isn't a defense. You're responsible for understanding what your algo does.

Can I run the same algo on multiple TradeDay accounts?

Yes, as long as you're not hedging. Running the same strategy across 3 accounts (all long or all flat, never opposing directions) is fine.

Does TradeDay prefer manual trading over automation?

They don't care either way. Manual traders and algo traders both get funded regularly. They just want to ensure automated trading is based on legitimate strategies, not simulation exploitation.

What if I want to run HFT strategies?

TradeDay isn't the right platform for HFT. Their simulation can't support true HFT execution, and strategies optimized for HFT typically violate their exploitation rules. Look for a different prop firm that explicitly supports HFT.

Can I hire a developer to build an algo for me?

Yes, but you're responsible for what it does. If the developer builds an exploitation bot without telling you, your account still gets banned. Make sure you understand the algo's logic before running it.

Do algo traders pass evaluations faster than manual traders?

Not necessarily. Algos can be more consistent, but they also lack the discretion to avoid bad market conditions. Manual traders who understand market context often do better than algos that blindly execute.

Bottom Line: Trade Legitimately or Don't Automate

TradeDay's algo trading rules boil down to one principle: trade based on legitimate market analysis, not simulation exploitation.

If your algo predicts market direction using technical indicators, order flow, or fundamental analysis — you're fine. If your algo is designed to game the evaluation system or exploit simulation mechanics — you're getting banned.

The safest approach: test extensively in normal sim, make sure your results look realistic (not 95% win rates), and be able to explain your strategy clearly.

For complete TradeDay rules including evaluation requirements, prohibited practices, and platform options, check the full TradeDay review.

Trade smart. Stay compliant. Get funded.