Risk Management FAQ’s
7 docs
MAE Flag/Warnings
Last Updated: January 7, 20261. What is MAE (Maximum Adverse Excursion)? MAE measures how far a trade moves against you before recovery or closure.High MAE indicates that too much of the account’s available drawdown is being risked on a single position. MAE is one of the strongest indicators of whether a trader is managing risk with discipline or allowing...
How do trailing drawdowns/Thresholds work?
Last Updated: January 6, 2026Key Takeaway (Start Here) What is the Trailing Drawdown? For Intraday accounts, the Trailing Drawdown is a real-time limit that follows your account’s highest balance (including open PnL) during the day. For End-of-Day accounts, the Minimum Balance threshold is set after the prior day’s close and stays fixed all day — it does not trail...
Do you have a consistency rule?
Last Updated: January 6, 2026Summary (Quick Reference) Applies To There are no payout-based consistency rules anymore. What Is the Consistency Rule? The Consistency Rule ensures that no single trading day dominates overall performance. Rule: No single trading day may contribute more than 40% of the total net profit accumulated toward the current Benchmark. This rule exists to prevent: Benchmarks...
Hedging Policy – Compliance & Regulatory Guidelines
Last Updated: January 6, 2026⚠️ Please Note: If a trade is unintentionally hedged — even if it hasn’t been flagged yet — it should be closed within 10 seconds. Flags are applied at the end of the day, and closing such trades quickly helps avoid flags. At PropShopTrader, we maintain a strict no-hedging policy in accordance with CFTC (Commodity...
Do you allow NEWS Trading?
Last Updated: January 6, 2026Yes, we do; however, there are specific limitations. Trading around news events can be highly volatile due to unforeseen market movements, slippage, and possible platform delays. News trading is only permitted if you consistently trade news events with a well-defined strategy. Random, speculative trades around news events without a clear strategy are not allowed and...
Do you allow Algos or Fully Automated Strategies?
Last Updated: January 6, 2026Yes, we do, as long as you adhere to the following guidelines: General Rules for Algos and Automated Strategies Prohibited Activities Important Disclaimers By adhering to these policies, you ensure that your use of algos and automated strategies complies with our standards for responsible and consistent trading.
Do you have restrictions on Flipping?
Last Updated: January 6, 2026What is Flipping? What is Regular Trading? Our Policy on Flipping Important Reminder The company values consistent, day-to-day trading systems over erratic trading patterns aimed at gaming the system. For more information visit our Prohibited Trading Practices.