Why it matters
Rejects cluster in fast markets. If your strategy requires immediate execution, reject risk becomes strategy risk.
Decision use: treat this term as a risk input. If you can’t observe it, you can’t size for it.
Common trap
Treating rejects as ‘bad luck’ instead of a predictable regime effect. Reject frequency is a signal about market conditions and platform constraints.
Example
You try to exit during a spike and get multiple rejects. That’s not just inconvenience. It’s a warning that your liquidity assumption is broken.
Operational cue: if you can’t point to it on the chart, in the DOM, or in your broker logs, treat it as a story and trade smaller.
Notes
Quick rule
- If you see this repeatedly, you are in a different regime than your model assumes.
- Regime change usually means position size change.
- When in doubt: trade smaller, or don’t trade.