Skip to main content

What is the Compliance Review Process at PropShopTrader?

How the compliance team reviews flags and MAE Warnings, how review applies at Benchmark 1, and what traders can do to stay compliant.

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 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 (Payout Account)

  • Account progression

  • Risk discipline

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.

Benchmark 1 compliance and KYC review (Gladiator Futures Payout Account)

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.

Account and profile limitations

  • Traders are allowed one profile on the platform.

  • Futures accounts: up to 5 Intraday, up to 5 Swing, up to 10 total.

  • Stock accounts: up to 5 Intraday, up to 5 Swing, up to 10 total.

  • Maximum accounts per trader: 20.

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.

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 account may receive up to 3 MAE warnings over its lifetime.

  • 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.

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.

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

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

  • On a Gladiator Futures (Payout Account), Benchmarks 2–7 trigger automatic simulated payouts, and Benchmark 8 triggers the Real Prop transition.

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

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


Cross-links:

Did this answer your question?