PropShopTrader is committed to maintaining a disciplined, fair, and secure trading environment. Our internal compliance and risk systems monitor trading behavior to ensure account integrity, platform security, and long-term sustainability.
With the introduction of the Gladiator Benchmark System, compliance enforcement now applies to Benchmark eligibility, account progression, and risk discipline, not payouts.
How Compliance Monitoring Works #
Our systems continuously monitor for behaviors that may indicate elevated risk, abuse, or manipulation, including but not limited to:
- Excessive or erratic position sizing
- Gambling-style trading behavior
- Account churning or repeated resets
- Coordinated or collusive trading across accounts
- Hedging between related accounts
- Attempts to manipulate benchmarks, account balances, or program rules
- Fraudulent activity or identity misuse
If a compliance issue is detected, the affected account may receive a flag or warning, which will appear on the Trader Dashboard along with a notification email after market close.
A detailed Flags & MAE Guide is available inside the dashboard for all traders.
Account Limits & Identity Requirements #
- Traders are permitted one profile/email address only
- A maximum of 5 active simulated accounts is allowed at any time across all products
- All accounts must be registered under the same legal name used for KYC verification
- Switching between individual and business registrations is not permitted
- Creating multiple profiles or exceeding account limits may result in account termination
Coordinated Trading & Hedging #
Traders must avoid any form of coordinated, mirrored, or opposing trading across accounts that could indicate:
- Hedging risk across multiple accounts
- Collusion with other traders
- Artificial distribution of profits and losses
Confirmed violations may result in flags, Benchmark invalidation, or account failure.
MAE (Maximum Adverse Excursion) #
What is MAE?
MAE measures how far a trade moves against you at its worst point before recovery or closure. It is a core indicator of risk discipline.
MAE Limit
- Maximum MAE per trade is 50% of the account’s original maximum drawdown
- This limit applies regardless of current profit or account balance
Examples
- $2,500 drawdown → max MAE per trade = $1,250
- $5,000 drawdown → max MAE per trade = $2,500
MAE Warnings & Account Failure #
- An MAE Warning is issued when a trade exceeds 50% MAE
- MAE Warnings apply per account, not per user
- Each account may receive up to 3 MAE Warnings over its lifetime
- Upon receiving the 3rd MAE Warning, that specific account is permanently failed
Important Notes
- MAE Warnings reset qualifying trading days for the current Benchmark
- Previously earned Benchmarks remain intact
- MAE Warnings are not appealable
Flags & Benchmark Eligibility #
- If an account is flagged, it becomes temporarily ineligible to record a Benchmark
- Flags do not:
- Remove profits
- Reset the account
- Affect other unflagged accounts
- Enforcement is applied at the account level
Benchmark tracking resumes once the flag is resolved, provided all requirements are met.
Appeals Process #
Appeals are allowed only for:
- Hedging flags
- Collusion or coordination flags
- False-positive system flags
Appeals:
- Must be submitted by replying to the Flag Appeal Email sent after market close
- Are reviewed solely to determine whether the flag should remain on the account
Appeals cannot:
- Reverse MAE Warnings
- Restore failed accounts
Trader Support & Transparency #
Our Compliance Team reviews all flagged cases individually and is available to:
- Explain the reason for a flag
- Review submitted documentation
- Help traders understand how to avoid similar issues going forward
Where applicable, traders may be asked to provide:
- A written trading plan
- Justification for unusual trading behavior
- Evidence of independent, non-collusive decision-making
Important Clarification on Program Structure #
- There are no payouts during the Gladiator Phase
- Gladiator performance is evaluated using the Benchmark System
- Benchmarks are performance achievements, not withdrawals
- Account progression and Real Prop consideration are based on:
- Consistency
- Risk discipline
- Benchmark completion
- Full compliance with trading rules
Final Note #
Trading with PropShopTrader is a privilege. Accounts that demonstrate poor risk control, rule exploitation, or manipulative behavior may be restricted or failed without exception.
Our goal is to identify traders capable of sustainable, professional trading and long-term success in the Real Prop environment.