How do I write rules that traders cannot dispute?
Quick answer
Define every term (equity, trading day, reset time), give the exact calculation, include a worked example, state the consequence of breaking each rule, and make the platform enforce the rules exactly as written. Show traders their live position against each rule so nothing comes as a surprise.
Detailed answer
A rule template:
- Name: daily loss limit.
- Definition: equity may not fall more than 5% below the day's opening value.
- Opening value: the higher of balance and equity at 00:00 UTC.
- Includes: open positions.
- Consequence: the account ends immediately.
- Example: on $100,000, the floor is $95,000 if the day opens at $100,000.
The weak point is often a mismatch between the written rule and what the software does. PropExecutor's rule builder describes each rule's calculation in plain language, and its dashboard shows traders the same limits the engine applies.
Test the wording
Give your rules page to a trader who has not seen it and ask them to calculate their floor for a given scenario. If their answer differs from yours, the wording needs work.
Keep a version history
Date every rules page version, so a trader's dispute can be judged against the rules that applied when they bought.
PropExecutor team · Updated
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