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What is the Compliance Review Process at PropShopTrader?

How the compliance team reviews flags and MAE warnings, how review applies at Benchmark 1 (Light/Forge) and at Sprint Evaluation/PTSA payout requests, account limits, and what traders can do to stay compliant — now including Gladiator Sprint.

Note

Trading with PropShopTrader is a privilege. Accounts that demonstrate poor risk control, rule exploitation, or manipulative behavior may be restricted or failed without exception.

The goal of the Gladiator program is to identify traders capable of sustainable, professional trading and long-term success in Real Prop.

Overview

PropShopTrader is committed to maintaining a disciplined, fair, and secure trading environment. Our internal compliance and risk systems monitor trading behavior to ensure account integrity, platform security, and long-term sustainability.

Compliance enforcement applies to:

  • Benchmark eligibility

  • Automatic simulated payouts on Gladiator Futures Light and Forge (Payout Accounts)

  • Account progression

  • Risk discipline

  • Sprint payout eligibility, including the 50% consistency requirement that applies in the Sprint PTSA phase

  • Sprint payout requests, which are reviewed individually before approval

How compliance monitoring works

Systems continuously monitor for behaviors that may indicate elevated risk, abuse, or manipulation, including but not limited to:

  • Excessive or erratic position sizing

  • Gambling-style trading behavior

  • Account churning or repeated resets

  • Coordinated or collusive trading across accounts

  • Hedging between related accounts

  • Attempts to manipulate benchmarks, account balances, or program rules

  • Fraudulent activity or identity misuse

If a compliance issue is detected, the affected account may receive a flag or warning. Flags appear on the Trader Dashboard, and traders receive an automated notification email after market close or an email from a team member.

A detailed Flags & MAE guide is available inside the Trader Dashboard.

Note on Sprint Accounts: News trading, algorithmic trading, and trade copiers are permitted on Sprint Accounts unless the Risk Team specifies otherwise. However, the same prohibited behaviors above (including hedging between related accounts and coordinated or collusive trading) apply to Sprint Accounts and may result in flags, denied payouts, or account failure.

Benchmark 1 compliance and KYC review — Gladiator Futures (Light and Forge Payout Accounts)

Benchmark 1 on a Gladiator Futures (Payout Account) is specifically designed as a compliance and KYC review checkpoint. When Benchmark 1 is recorded:

  • Identity documents are re-verified.

  • KYC status is confirmed as current.

  • The trading history up to Benchmark 1 is reviewed against compliance rules.

  • Any open flags must be resolved before payouts on Benchmark 2 are issued.

Benchmark 1 does not pay out. Its purpose is to ensure every trader entering the automatic simulated payout phase is fully verified and compliant before any funds are committed.

For a dedicated walkthrough, see Compliance Review at Benchmark 1 — What to Expect.

Compliance and KYC review on Sprint Accounts: Sprint Accounts do not use a Benchmark 1 checkpoint. Instead, when a trader passes the Sprint Evaluation, a contract is sent for signature and the Sprint PTSA account is only created after that signed contract is recorded. Identity and KYC verification, along with a review of trading history, apply before the trader enters the PTSA payout phase. In addition, each Sprint PTSA payout request is reviewed individually. If an account fails during a payout review (even after the payout was requested), the payout is denied. For full Sprint account mechanics, see How Gladiator Sprint Accounts Work.

Account and profile limitations

Traders are allowed one registered profile (email). Creating multiple profiles or exceeding account limits may result in account termination. Your account must be registered under the same legal name shown on your KYC documents, and that name must remain consistent throughout your journey. Switching between individual and business registrations is not permitted.

Coordinated trading and hedging

Traders must avoid coordinated or mirrored trading across accounts that could indicate:

  • Hedging risk across multiple accounts

  • Collusion with other traders

  • Artificial distribution of profits and losses

Confirmed violations may result in compliance flags, Benchmark invalidation, or account failure.

These rules apply equally to Sprint Accounts. Confirmed violations on a Sprint Account may result in compliance flags, denied payouts, or account failure.

Maximum Adverse Excursion (MAE)

MAE measures how far a trade moves against you at its worst point before recovery or closure. It is a core indicator of risk discipline.

  • Maximum MAE per trade = 50% of the account's original maximum drawdown.

  • This limit applies regardless of current balance or profit level.

  • Each Gladiator Light and Gladiator Stocks account may receive up to 3 MAE warnings over its lifetime (3-warning system).

  • On the third MAE warning, the account is permanently failed.

  • MAE warnings reset qualifying trading days for the current Benchmark. Previously earned Benchmarks remain intact. MAE warnings cannot be appealed. (Applies to Gladiator Light and Gladiator Stocks)

  • Gladiator Forge: Forge accounts do not use the 3-warning system. A single MAE breach — on either an open trade (unrealized loss) or a closed trade (realized loss) — is an instant fail of the account. On Forge, the MAE Cap equals the Daily Loss Limit value. On Gladiator Forge, the Daily Loss Limit is a soft breach: when net daily P&L reaches the Daily Loss Limit, open positions are closed and the account is locked out until the next session (6:00 PM EST). It does not by itself fail the account. The single-trade MAE instant-fail rule is system-enforced and non-appealable.

  • Gladiator Sprint: Sprint accounts also do not use the 3-warning system. A single MAE breach is an instant fail (single position, no warnings, static), system-enforced and non-appealable. For the specific Sprint MAE and Daily Loss Limit values, see How Gladiator Sprint Accounts Work.

Flags and Benchmark eligibility

If an account receives a compliance flag, the account becomes temporarily ineligible to record a Benchmark. Flags do not:

  • Remove profits

  • Reset the account

  • Affect other unflagged accounts

Compliance enforcement is applied at the account level. Benchmark tracking resumes once the flag is resolved and all requirements are met.

On a Sprint Account, an open compliance flag makes the account temporarily ineligible to request or receive a payout until the flag is resolved.

Appeals process

Appeals are allowed for the following flag types:

  • Hedging flags

  • Collusion or coordination flags

  • False-positive system flags

Appeals must be submitted by replying to the Flag Appeal email sent after market close. Appeals are reviewed only to determine whether the flag should remain on the account. Appeals cannot:

  • Reverse MAE warnings

  • Restore failed accounts

  • Reverse Gladiator Forge or Gladiator Sprint MAE instant-fail events

Compliance support

The PropShopTrader Compliance Team reviews all flagged cases individually. Traders may contact support to:

  • Understand the reason for a flag

  • Submit supporting information

  • Learn how to avoid similar issues in the future

In certain cases, traders may be asked to provide:

  • A written trading plan

  • Justification for unusual trading behavior

  • Evidence that trades were made independently

Important clarification about the program structure

A Gladiator Futures (Payout Account) is the Futures evaluation product at PropShopTrader. During Evaluation, the account runs on the automatic Simulated Payout Program:

  • Gladiator Light: each qualifying Benchmark between Benchmark 2 and Benchmark 7 triggers a simulated payout, and Benchmark 8 triggers an automatic transition review into Real Prop under the Real Prop Trading Agreement (RPTA).

  • Gladiator Forge: each qualifying Benchmark between Benchmark 2 and Benchmark 6 triggers a simulated payout, and Benchmark 7 triggers an automatic transition review into Real Prop under the Real Prop Trading Agreement (RPTA).

  • On a Gladiator Stocks account, payouts begin after Real Prop approval and execution of the Real Prop Trading Agreement.

  • Gladiator Sprint: Sprint Accounts use a different structure. A Sprint Account has two phases — the Sprint Evaluation, then the Sprint PTSA phase after the trader passes and signs the required contract. Sprint Accounts do not use the benchmark ladder. In the PTSA phase, payouts are requested manually once eligibility is met, each request is reviewed individually, and a 50% consistency rule applies. See How Gladiator Sprint Accounts Work for payout splits, limits, and the Move Live process.

Signing Bonus applies to Stock accounts only. There is no Signing Bonus on any futures payout account (Light, Forge, or Sprint).

Account progression and eligibility for Real Prop remain based on consistency, risk discipline, Benchmark completion, and full compliance with trading rules.


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