Risk Management FAQ’s
7 docs
MAE Flag/Warnings
Last Updated: January 31, 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 31, 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 31, 2026No, as of January 31, 2026, PropShopTrader does not apply any consistency rule to any account. Traders are evaluated only on benchmarks, drawdown, and standard compliance rules.
Hedging Policy – Compliance & Regulatory Guidelines
Last Updated: February 5, 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 Algos or Fully Automated Strategies?
Last Updated: January 31, 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 31, 2026What is flipping? Is flipping allowed? How is this evaluated? What happens if flipping behavior is identified?
