The actual trading strategy you use during the demo evaluation is completely up to you. Of course, any “trading styles” that are deemed as cheating are not allowed, this includes any style of demo account trading that would not result in profits in the real market, or would not be possible in real market trading conditions, for example, hedging trades between accounts, or an unrealistic execution price in the demo environment due to a news event causing volatility in the market. For more information on strategies that may be deemed unrealistic in the demo environment, please see the “Other rules to keep in mind” FAQ.

CFTC Rule 4.41

Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. CFTC Rule 4.41