Risk Engine

Trading Violation Detection
for Prop Firms

Q: What types of trading violations does FXPropTech detect?

FXPropTech detects 15+ violation types natively, including: Maximum Drawdown Breach, Daily Loss Limit Exceeded, Weekend Holding Violation, Profit Target Manipulation, Maximum Lot Size Breach, Minimum Trading Days Not Met, Expert Advisor Restriction, Restricted Instrument Trading, Evaluation Period Expiry, and custom policy violations configured per plan.

Q: How fast does FXPropTech detect a trading rule breach?

FXPropTech detects rule breaches in under 50 milliseconds from the trade event. Every trade open, modify, partial close, and full close is streamed in real time to the violation detection engine, which recalculates account state and evaluates the full rule set immediately — with no manual checkpoints.

Q: What happens automatically when a violation is detected?

When a violation is detected, FXPropTech automatically executes the configured enforcement action — which can include account suspension, force-closing open positions, changing account status to Failed, sending a webhook notification to operators, and emailing the trader. All actions fire simultaneously and are written to an immutable audit log.

Q: Can enforcement actions be customised per violation type?

Yes. Every violation type has independently configurable enforcement actions. You can set Critical violations to trigger immediate suspension, High violations to trigger a warning and flag, and Medium violations to log only. Each action — warn, flag, suspend, fail, or force-close — is assignable per violation type and per evaluation phase.

Q: Does FXPropTech provide a full audit trail for violations?

Yes. Every trade event, state recalculation, rule evaluation decision, and enforcement action is written to an immutable, timestamped audit log. The log is accessible from the Admin CRM and is used for compliance reporting, dispute resolution, and trader appeals. Entries cannot be modified or deleted.

Q: Can different evaluation plans have different rule sets?

Yes. FXPropTech supports per-plan rule assignment. Different evaluation programs, account sizes, or trader tiers can each have a completely independent rule set — with different drawdown limits, lot caps, session restrictions, and profit targets — all managed from the Admin CRM without any coding or platform changes.

Q: How does FXPropTech handle weekend holding violations?

FXPropTech monitors open positions at the Friday market close. If positions remain open when the weekend restriction window begins, they are automatically force-closed per your policy and a weekend holding violation is logged to the account's audit trail. The restriction window start and end times are fully configurable.

Q: Can traders receive notifications when they are close to a limit?

Yes. FXPropTech supports configurable warning thresholds. For example, you can configure a warning alert when a trader reaches 80% of their daily loss limit or 90% of their maximum drawdown — giving them a chance to adjust before a hard breach triggers suspension. Warnings are sent via email, in-platform notification, or webhook.

Every rule breach caught the moment it happens. Drawdown limits, daily loss caps, profit target manipulation, weekend holding violations, and all custom policy breaches are detected, logged, and actioned automatically — with complete audit trails for every account.

Book a Demo Rules Library

<50ms

Detection Latency

15+

Violation Types

100%

Automated Action

Rule Breach Detected

Account Auto-Suspended

Live Violation Log

#9021trader_xu_99 — Max Daily Loss ExceededSuspended

#9020trader_jin_22 — Weekend Hold DetectedFlagged

#9019trader_mark_5 — Overall Drawdown HitSuspended

#9018trader_sam_8 — EA Restriction BreachWarning

#9017trader_priya_3 — Phase 1 Trade✓ Clean

Suspended

Flagged

247

Clean Trades

Capabilities

Every Breach Caught, Every Time

The Violation Detection module runs a continuous rule evaluation cycle against every trade event — with no exceptions, no downtime, and no manual checkpoints.

Drawdown Limit Enforcement

Both daily and overall maximum drawdown tracked per account in real time. Breach triggers instant account suspension before further loss can occur.

Session & Weekend Restrictions

Configurable allowed trading sessions. Open positions on weekends or restricted hours are flagged and force-closed per your firm's policy.

EA & Automation Restrictions

Detect and block expert advisors or algorithmic trading tools that violate your policy. Define allowed vs. prohibited automation per account type.

Profit Target Monitoring

Track real-time P&L against profit targets across all evaluation phases. Auto-advance accounts that pass and notify operators for funded account creation.

Violation Types

15+ Violation Types Fully Covered

From basic drawdown breaches to sophisticated manipulation attempts — every known violation type is classified, detected, and enforced automatically.

● Critical

Maximum Drawdown Breach

Account equity falls below the overall maximum drawdown threshold. Immediate suspension triggered — no trades allowed until reviewed.

● Critical

Daily Loss Limit Exceeded

Net loss within a single trading day exceeds the configured maximum daily loss percentage. Account is suspended for the remainder of the day.

◆ High

Weekend Holding Violation

Open positions detected on Friday close or across the weekend market gap — force-closed per policy with violation logged to audit trail.

◆ High

Profit Target Manipulation

Suspicious trade patterns designed to artificially inflate reported P&L or exploit evaluation pass criteria detected and flagged.

◆ High

Maximum Lot Size Breach

Single trade or cumulative exposure exceeds the allowed maximum lot size per instrument — trade rejected at order level.

▲ Medium

Minimum Trading Days Not Met

Trader attempts to claim a pass or advance phase without meeting the minimum required active trading day threshold.

▲ Medium

Expert Advisor Restriction

Algorithmic trading or EA usage detected on accounts where automation is restricted. EA signature identified and flagged for review.

▲ Medium

Restricted Instrument Trading

Trades placed on instruments not permitted for the account's evaluation plan — automatically rejected at order entry.

▲ Medium

Evaluation Period Expiry

Trader fails to meet profit target within the allowed challenge period — account automatically marked as failed and archived.

Process

From Trade to Enforcement Action

A sub-50ms pipeline from trade event receipt to final enforcement — fully automated with zero manual checkpoints.

Trade Event Ingested

Every trade open, modify, partial close, and full close is streamed in real time from the trading platform via WebSocket or FIX bridge to the violation detection engine.

Account State Calculated

Running P&L, equity, open exposure, daily loss, drawdown from peak, and session time are recalculated in memory with each new event — always current, never lagging.

Rule Set Evaluated

The account's assigned rule set — drawdown limits, session rules, lot caps, EA restrictions, weekend holds, and custom conditions — is evaluated in parallel against the updated state.

Violation Classified

Any rule breach is classified by type and severity — Critical, High, or Medium — with configurable grace periods or immediate enforcement based on breach type.

Enforcement Executed

Automatic enforcement: account suspension, force-close of open positions, status change to "Failed", operator webhook notification, and email alert to trader — all triggered simultaneously.

Audit Entry Created

Every event — trade, calculation, decision, and action — is written to an immutable, timestamped audit log accessible from the Admin CRM for compliance and dispute resolution.

Violation Log — Admin Panel

trader_xu_99 — Max Daily Loss5.0%Suspended

trader_jin_22 — Weekend Hold2 PositionsForce Closed

trader_mark_5 — Drawdown10.0%Failed

trader_priya_3 — Lot Size0.5 / 5.0Compliant

trader_mia_7 — Profit Target7.2% / 8%On Track

Built for Operators

Complete Visibility.
Zero Manual Work.

The Violation Detection module eliminates every manual compliance check. Your Admin CRM shows live status for every account — violations highlighted, decisions logged, and all actions traceable.

Configurable enforcement actions — choose warn, flag, suspend, fail, or force-close per violation type and severity level.
Webhook & email alerts — operators and traders are notified instantly via webhook, email, or Slack when a critical violation occurs.
Per-plan rule assignment — apply different rule sets to different evaluation plans, account sizes, or trader tiers without any coding.
Immutable audit log — every decision and action timestamped and stored permanently for compliance, dispute resolution, and analytics.

<50ms

Breach detection
latency per event

15+

Violation types
covered natively

100%

Automated suspension
no manual steps

∞

Concurrent accounts
monitored in parallel

Frequently Asked Questions

Trading Violation Detection FAQs

Everything prop firm operators need to know about automated rule breach detection and enforcement in FXPropTech.