Why Your Trade Is Blocked on Alpaca and How Genius Complies with the PDT Rules

‍Why Your Trade Is Blocked on Alpaca and How Genius Complies with the PDT Rules

You see the message “Trade Denied Due to Pattern Day Trading Protection” on Alpaca Trading? If you're trying to close a position in your US equity portfolio and you're stuck, don't worry: it's not a bug. It is a protective measure linked to American regulations, and tools like the Genius algorithm with its Autotrade feature are designed to help you trade intelligently while remaining compliant.

What is PDT Protection?

The rule of “Pattern Day Trading” (PDT), imposed by the SEC in the United States, concerns margin accounts with less than 25,000 . It refers to you as a “Pattern Day Trader” if you make 4 round-trip trades (buying and selling the same stock on the same day) or more over 5 business days, and these trades represent more than 6% of your total business. Once labeled PDT, you must maintain a balance of at least 25,000 to trade without restrictions. Alpaca activates this protection to prevent you from mistakenly exceeding the limit of 3 day trades over 5 days, blocking transactions that would cause you to cross this threshold.

Why Can't You Close Some Trades?

This blockage can occur for several reasons:

You have reached 3 day trades over the last 5 working days.

Selling now would count as a 4th day trade, breaking the PDT rule.

Pending orders are taken into account, freezing your possible actions.

It's frustrating when you want to secure a gain or limit a loss, but it's meant to avoid regulatory problems.

How do you get around the problem?

Here are your options:

Check your history : Look at how many day trades you've made recently.

Wait for tomorrow : Selling the next day doesn't count as a day trade, so timing is key.

Increase your account : With over $25,000, PDT limits are disappearing, but it's not available to everyone.

Use smart tools : This is where the Genius algorithm with Autotrade comes in.

Genius and Autotrade: Built for Compliance

The Genius algorithm, available on genius-station.com, and its 100% automatic Autotrade functionality are specifically designed to comply with PDT rules in accordance with American regulations. Unlike manual trading, where it's easy to lose track, Genius tracks your activity and adjusts your trades to stay under the threshold of 3 day trades over 5 days. It's a stress-free way to continue trading your U.S. stocks without falling into the trap of Alpaca's PDT protection. Whether you're a casual or active investor, Genius has you covered.

Conclusion

The message “Denied due to PDT protection” is a safety, not an impediment. It reminds you to play by the rules — or let technology do it for you. With Genius on genius-station.com, you can trade with confidence, knowing that your strategy is in line with regulations. Ready to take control of your wallet?