Prop trading accounts
How do prop firm risk managers identify exploitative system gaming behaviors (e.g., high-frequency tick scraping anomalies)?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Risk managers use analytics software to flag abnormal patterns like one-sided tick scalping around news spikes or latency-exploiting order clustering as rule violations.
How it works
Firms monitor trade timing, holding periods, and correlation with news events to detect strategies deemed to be exploiting simulated fill inefficiencies.
An example
A trader is flagged for scalping only during news-spike ticks.
Risk & limitations
Detection criteria are proprietary and undisclosed, varying by firm.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.