Risk Management & Payout Rules FAQ’s
9 docs
How do trailing drawdowns/Thresholds work?
Last Updated: May 28, 2025Key Takeaway (Start Here) 🛡 Want more room to trade? Add Drawdown Protection during checkout to increase your trailing drawdown limit. 📘 What is the Trailing Drawdown? The Trailing Drawdown is a real-time limit that follows your account’s highest balance (including open PnL) during the day. It ensures risk control by setting a floor you...
Are there any rules or restrictions that can prevent me from getting my payouts?
Last Updated: June 3, 2025In the Warrior Phase, there are no restrictions other than to not hit your trailing drawdown threshold. Once you progress to a Gladiator Paid Trading Sim Account (PTSA) or purchase an Instant Gladiator Account, you will be forced to abide by our risk management criteria.In order to understand what we aim to attract as a...
Do you have a consistency rule?
Last Updated: May 13, 2025Warrior Accounts There is no consistency rule for Warrior accounts. To progress further, traders must complete at least 5 trading days and reach the profit target without hitting the maximum trailing drawdown threshold. Gladiator/Instant Gladiator Accounts Consistency Rule – 40% Profit ThresholdTo promote disciplined, sustainable trading practices, PropShopTrader enforces a 40% Consistency Rule as part...
What is the Carry-Forward Rule?
Last Updated: March 27, 2025Some traders may attempt to exploit the system by avoiding active trading or flipping accounts. These actions conflict with the firm’s goal of fostering disciplined traders who consistently demonstrate proper trading behavior. For this reason, we have introduced a Carry Forward Rule. Carry-Forward Rule: Profit Balance Carry Forward Requirement This rule applies to all Gladiator Accounts (PTSA) that have...
Hedging Policy – Compliance & Regulatory Guidelines
Last Updated: June 3, 2025⚠️ 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: November 20, 2024Yes, 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: April 22, 2025Yes, 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: November 22, 2024What 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.
Can payout caps be modified?
Last Updated: November 21, 2024Yes, PropShopTrader reserves the right to modify, increase, decrease, or abolish payout caps at its discretion. The company prioritizes its safety measures over individual trader interests and can disqualify traders if deemed necessary.