Skip to main content

What is the Compliance Review Process at PropShopTrader?

Updated this week

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 the Real Prop environment.

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.

  • With the introduction of the Gladiator Benchmark System, compliance enforcement applies to Benchmark eligibility, account progression, and risk discipline, not payouts.


How compliance monitoring works

Our 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 will appear on the Trader Dashboard, and traders will also receive an automated notification email after market close or a team member might reach out via email.

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


Account limits and identity requirements

To maintain fair participation in the program, the following rules apply:

  • Traders are permitted one profile/email address only

  • A maximum of 5 active simulated accounts is allowed at any time across all asset classes

    • 5 Futures accounts

    • 5 Stocks accounts

  • All accounts must be registered under the same legal name used for KYC verification

  • Switching between individual and business registrations is not permitted

  • Creating multiple profiles or exceeding account limits may result in account termination


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

  • Account failure


Maximum Adverse Excursion (MAE)

What is 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.

MAE limit

The maximum MAE per trade is 50% of the account’s original maximum drawdown.

This limit applies regardless of the account’s current balance or profit level.

Example

  • $2,500 drawdown → max MAE per trade = $1,250

  • $5,000 drawdown → max MAE per trade = $2,500

MAE warnings and account failure

An MAE Warning is issued when a trade exceeds the 50% MAE limit.

Important rules:

  • MAE warnings apply per account, not per user

  • Each account may receive up to 3 MAE warnings over its lifetime

  • Upon receiving the third MAE warning, that account is permanently failed

Important notes about MAE warnings

  • MAE warnings reset qualifying trading days for the current Benchmark

  • Previously earned Benchmarks remain intact

  • MAE warnings cannot be appealed


Flags and Benchmark eligibility

If an account receives a compliance flag, the account becomes temporarily ineligible to record a Benchmark

However, 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.


Appeals process

Appeals are only 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


Compliance support and transparency

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

  • There are no payouts during the Gladiator Phase.

  • Gladiator performance is evaluated through the Benchmark System.

  • Benchmarks represent performance achievements, not withdrawals.

Account progression and eligibility for Real Prop consideration are based on:

  • Consistency

  • Risk discipline

  • Benchmark completion

  • Full compliance with trading rules

Did this answer your question?