How do I handle traders who exploit platform latency?

Question

Accepted Answer

Latency exploitation means trading on prices before the simulator updates, for example using a faster external feed. Defend with a fast, reliable feed, minimum hold time rules, review of very short profitable trades, and clear terms that prohibit exploiting price delays, with the right to remove such profits.
Signs of latency trading:
Very high win rates on trades lasting seconds.
Entries just before moves the simulator showed late.
Trading concentrated around volatile moments.
Measures:
Minimum hold time: flag or breach trades closed too quickly.
Order limits: maximum orders per day.
Review before payout: check holding times and timing.
Terms: prohibit exploiting latency or price errors explicitly.
PropExecutor's minimum hold time rule, judged from closed trades, and its maximum orders per day rule target exactly these patterns, and flags are recorded for review before you approve a payout.
### Gathering evidence
Before acting, compare the account's entry times with the price feed: consistently entering just before moves that appeared on other sources first is the clearest sign. Keep the analysis with the payout decision.
Apply the same evidence standard to every case, explain the decision to the trader with the trades involved, and offer the appeal route in your payout policy.

How do I handle traders who exploit platform latency?

Detailed answer

Gathering evidence

Related questions