Overview
PropShopTrader requires all traders to operate within professional risk and compliance standards.
Trading behavior that attempts to bypass risk, manipulate evaluation outcomes, or remove genuine market exposure is not allowed.
The goal is not just to make money. The goal is to demonstrate disciplined, scalable, and compliant trading behavior.
Is hedging allowed?
No, PropShopTrader has a strict no-hedging policy.
This applies across accounts and is enforced to align with PST’s compliance and regulatory framework.
Important note
If a trade becomes unintentionally hedged, even if it has not been flagged yet, it should be closed within 10 seconds.
Flags are applied at the end of the day. Closing an accidental hedge quickly helps reduce the chance of enforcement.
What counts as hedging?
Hedging means holding both long and short exposure in the same instrument in a way that artificially reduces market risk.
Prohibited hedging examples
Prohibited Activity | Example |
Opposing positions in the same instrument | Long ES in one account and short ES in another |
Using multiple accounts to offset risk | One account wins while the other absorbs the loss |
Hedging micro and mini contracts | Long MES while short ES |
Coordinated hedging with others | Two people place opposite trades to guarantee one winning account |
Same-profile cross-account hedging | Multiple accounts under the same user profile holding opposing exposure |
For Stocks, this also includes holding opposing positions in the same symbol across multiple accounts under the same profile during overlapping periods.
What is coordinated trading?
Coordinated trading is not allowed.
This includes any situation where two or more people, or multiple affiliated accounts, are used to distribute risk or manipulate outcomes.
Common examples
Scenario | Example |
Family or household hedging | Spouse or sibling accounts trade opposite directions in the same market |
Community or Discord coordination | One group member goes long while another goes short so one account always benefits |
Friends or business partners offsetting each other | Two people intentionally mirror trades in opposite directions |
Multiple-name benchmark exploitation | A trader uses family, friends, or aliases to place opposing trades and cycle progress |
What happens if hedging is detected?
First Violation
If hedging is detected for the first time:
affected accounts are closed and failed pending appeal
benchmarks on affected accounts are not processed
accumulated profits on affected accounts are forfeited
the trader receives a formal warning
unaffected accounts may remain active
Closure becomes permanent only if the appeal is denied.
Repeated Violations
If hedging continues after warning:
permanent account closure
forfeiture of benchmarks and profits
permanent ban from PropShopTrader
If coordinated trading is detected
If coordinated trading is confirmed:
all involved accounts are permanently closed
all accumulated benchmarks are forfeited
all involved traders may be permanently banned
What is the hedging appeal process?
A Hedging Flag Appeal email is sent after market close on the day the flag is issued.
Appeals are required only for Gladiator accounts.
To appeal:
reply within 24 hours
no later than 1:00 AM EST Saturday
include your explanation
include your trading plan
include any supporting evidence such as screenshots or chart markups
Compliance will review the reply and issue a decision.
If approved
the hedging flag is removed
benchmark eligibility resumes if otherwise eligible
If denied
enforcement remains in place
Is flipping allowed?
No, Flipping is not allowed.
What is flipping?
Flipping refers to placing trades mainly to satisfy minimum activity thresholds without demonstrating sustained trading performance.
This may include:
concentrating most trading into one trade
concentrating most activity into one day
trying to advance account status without showing consistent trading behavior
How is flipping evaluated?
Flipping is evaluated using objective execution patterns such as:
trade distribution across days
concentration of activity
adherence to normal program standards
There is no subjective reading of intent required.
What happens if flipping is identified?
Accounts that show prohibited flipping behavior may be:
restricted
reviewed
failed under program rules
Other prohibited or restricted behavior
The following behavior is also not allowed:
Behavior | What it means |
System exploitation | Using platform or data behavior to bypass intended rules |
Benchmark manipulation | Trading only to satisfy progression metrics rather than demonstrate skill |
Identity misuse | Multiple profiles, false identity use, or account sharing |
Risk-neutral structures | Trade behavior designed to remove genuine market exposure |
Rule circumvention | Any attempt to avoid the spirit or structure of the program |
For more information, please click here.
How to stay compliant
To reduce the chance of flags or violations:
trade only one direction per instrument across your accounts
monitor all open positions carefully
monitor both manual and algorithmic trades
ensure your automation does not create opposing positions
close accidental hedges immediately
avoid any activity designed to force progress without genuine trading performance