Prohibited Trading Practices
Trading Expectations, Strategy Guidelines, & Gambling policy
PURPOSE
Why This Page Exists
PropShopTrader is built for traders who operate with discipline, consistency, and respect for risk.
Our programs are designed to identify and scale professional trading behavior not gambling, exploitation, or system abuse.
This page outlines the trading behaviors we expect, the practices we do not allow, and how compliance is enforced to protect both traders and firm capital.
Important Notice
This page provides the current, controlling standards for trading expectations, prohibited practices, and enforcement at PropShopTrader. We keep these standards updated to reflect evolving risk controls, platform integrity needs, and compliance requirements.
Additional terms may exist in program agreements and related policy pages; however, participation is contingent upon adherence to the most current version of these Prohibited Practices & Trading Integrity Standards, along with any referenced policies or program rules posted by PropShopTrader.
WHAT WE EXPECT FROM TRADERS
Professional Trading Expectations
Traders are expected to:
- Trade with a defined, repeatable strategy
- Use consistent position sizing
- Respect drawdown, MAE, and risk limits
- Apply clear entries, stops, and exits
- Trade with intent not impulse
Our goal is not to restrict creativity, but to ensure traders demonstrate behavior that can be responsibly scaled into Real Prop capital.
PROHIBITED TRADING BEHAVIOR
Prohibited Trading Practices
The following behaviors are not permitted across the Gladiator or Real Prop phases.
Important: The examples below are non-exhaustive. PropShopTrader reserves the right, at its sole discretion, to identify and act upon any trading behavior not explicitly listed that undermines professional trading standards, risk controls, platform integrity, or fair participation.
Gambling & High-Risk Behavior
- Overleveraging or risking excessive drawdown on a single trade
- Sudden, unexplained jumps in contract size
- “All-in” or windfall-style trading
- Trading without stop-loss discipline
Account Manipulation & System Abuse
- Account churning or contract flipping to satisfy minimum activity requirements
- Attempting to manipulate payouts, benchmarks, eligibility thresholds, performance metrics, or balances
- Exploiting platform errors, price delays, order routing issues, or feed discrepancies
- Using external or unauthorized data feeds
Hedging & Collusion
- Simultaneous long and short positions in the same instrument/ticker
- Hedging between micro and parent contracts (e.g., MES ↔ ES) or same stock
- Using multiple accounts to offset or neutralize risk
- Coordinated trading with other individuals, accounts, or entities
Automation Abuse
- Fully or semi-automated systems without active supervision
- High-frequency, latency-based, or execution-mechanic exploitation strategies
- Arbitrage or wash-trade behavior
- Software designed to exploit execution mechanics or platform vulnerabilities
Automation is permitted only when the trader is actively present, continuously monitoring activity, and able to intervene manually at all times.
COMPLIANCE & MONITORING
Compliance Monitoring & Flags
PropShopTrader uses internal systems to monitor for behavior that may indicate:
- Excessive MAE
- Inconsistent sizing
- Gambling-style risk
- Hedging or collusion
- Abusive automation
- Account churning
- Manipulation of benchmarks, eligibility, or performance metrics
If activity is flagged:
- The trader is notified via dashboard and email
- A review may occur
- Appeals may be available where applicable
Compliance reviews are corrective, not punitive.
Their purpose is to help traders realign with professional standards and regain eligibility.
CONSEQUENCES
Consequences of Violations
Depending on severity, violations may result in one or more of the following actions, at PropShopTrader’s sole discretion:
- Temporary payout restrictions (Real Prop Phase)
- Removal of affected trades from records
- Adjustment, exclusion, or nullification of profits, benchmarks, eligibility status, performance metrics, or progression credit derived from prohibited activity
- Loss of progression eligibility
- Account termination
- Trader removal
All decisions are made to protect firm capital, platform integrity, and compliant traders.
MULTIPLE ACCOUNTS & IDENTITY
Account & Identity Standards
- One trader profile per individual or business
- Maximum of five (5) active simulated accounts per asset class; unless otherwise expressly grandfathered under prior program terms, subject to modification or revocation at PropShopTrader’s sole discretion.
- All accounts must match verified legal identity
- No third-party trading or shared access
- Multiple accounts are expected to represent distinct strategies, not duplicated risk
NEWS TRADING
News Trading Guidelines
News trading is permitted with caution. Traders must:
- Use defined risk controls
- Avoid impulsive sizing
- Account for slippage and volatility
A 30-second buffer before and after news releases is strongly recommended.
LEGAL & DISCRETION
Firm Discretion & Policy Updates
PropShopTrader reserves the right, at its sole discretion, to:
- Modify or update these standards and related policies at any time
- Interpret and enforce rules as necessary
- Protect firm capital above individual interests
Participation does not guarantee progression, transition to Real Prop, or payouts. All trading activity remains subject to ongoing review for risk, compliance, and platform integrity. Continued participation is contingent upon adherence to the most current posted standards, policies, and program rules.
Trader Removal
PropShopTrader reserves the right, at its sole discretion, to restrict, suspend, or permanently remove any trader from any phase, program, or service at any time, with or without notice, if their behavior, trading activity, risk profile, or conduct is deemed inconsistent with firm standards, risk tolerance, compliance requirements, or platform integrity.
Final Determination
All compliance determinations, violation findings, and enforcement actions are made at PropShopTrader’s sole discretion and are final. Where an appeal process is offered, it is limited to the firm’s internal review process under the applicable appeal standards.
Third-Party Tools & External Trading Disclaimer
PropShopTrader is not responsible for trading decisions, outcomes, losses, or disputes arising from third-party tools, educators, indicators, data sources, communities, vendors, or any trading activity performed outside PropShopTrader programs even if a trader uses similar platforms, concepts, or instruments elsewhere.
Page Errors or Discrepancies
PropShopTrader works to keep all policies accurate and updated. In the event of any error, discrepancy, or conflicting interpretation, PropShopTrader reserves the right, at its sole discretion, to determine the applicable standard and enforce it to protect firm capital and platform integrity.
CLOSING
Our Commitment
These policies exist to protect disciplined traders and build a professional trading ecosystem.
When traders operate with consistency and integrity, everyone benefits including long-term scaling opportunities into Real Prop capital.
Support: support@propshoptrader.com
