Risk Controls
Understanding PropShopTrader’s Risk Controls and Trading Guidelines is essential to structured participation.The following outlines core parameters within the Evaluation phase.
Maximum Adverse Excursion (MAE)
MAE is calculated per trade and is limited to 50% of the original account drawdown.
Example: A $2,500 drawdown account has a maximum per-trade MAE of $1,250.
MAE Enforcement
One (1) MAE warning resets qualifying trading days
Three (3) MAE warnings result in permanent account failure
MAE warnings do not reset
MAE violations are final and not subject to appeal
MAE limits exist to ensure position sizing remains aligned with structured risk parameters.
Hedging
Hedging between accounts in the same instrument is prohibited.
Not Permitted
- Simultaneous long and short positions in the same symbol across multiple accounts
- Micro-to-parent contract offsetting (e.g., MES ↔ ES)
- Synthetic neutrality designed to reduce genuine market exposure
Permitted
- Correlated market positioning (e.g., Long ES / Short NQ)
- Multi-asset exposure (e.g., Futures and related equities)
All activity is monitored for risk integrity.
Prohibited Practices
Once transitioned to Real Prop:
- Gambling-style risk concentration
- Excessive drawdown exposure on single trades
- Account manipulation or collusion
- Automation abuse
- Activity intended to circumvent program structure
All trading must reflect structured, risk-aligned behavior consistent with professional standards.
