Should a rule violation end the account or only reject the order?

Quick answer

Use account-ending breaches for loss limits, where the damage has already happened, and order rejection for rules that can be prevented before the trade, such as lot size, instruments or position count. Use flags for behaviours that need a human decision. Matching the action to the rule feels fairer to traders.

Detailed answer

A sensible mapping:

  • Breach: daily loss, maximum loss, trailing drawdown, weekend holding.
  • Reject order: lot size, instruments, leverage, open positions, trading hours.
  • Flag for review: minimum hold time, unusual patterns.

Rejecting an order costs the trader nothing but the attempt, while ending an account over a lot-size typo creates resentment.

PropExecutor lets you choose the action per rule where it makes sense: rules support breach, reject order or flag depending on their nature, and custom rules can use any of the three.

Example

A trader places an order on an instrument their account does not allow. Rejecting it is enough: no harm was done, and the trader learns the rule. Ending the account for it would be disproportionate.

Consistency

Whatever actions you choose, apply them identically to every account on the same rule set, and list each rule's consequence on your rules page.

Review with data

If one rejection fires very often, the rule may be unclear; check the wording and the dashboard.

PropExecutor team · Updated

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