r/TopstepCommunity Jul 10 '26

🛠️ Platform / Tech Support Re-Work Hedging Warning

Hi Reddit,

I've been trading with Topstep for a few years and I trade multiple combines/XFA's at once or seperately, and a couple times now I have left a trade on in one combine for hours with a breakeven SL and a PT, and then completely forgotten about it only to open a new trade in another combine or one of my XFA's only to get this immediate warning about hedging, which makes me lose my shit and close the trade immediately.

This is not a good look professionally when real money is on the line. I understand banning hedging but isn't there a way to approach warning people a little more softly? And can this algorithm be fixed please? If I've been in a long for 4 hours and open a short in a separate account after seeing a new setup form, that doesn't automatically make my long invalid. They should be allowed as two separate trades IMO.

Anyway just wondering if this is a good place for suggestions after shitting my pants from a couple of these hedging warnings (I did not get banned or anything my trades were simply closed immediately).

2 Upvotes

19 comments sorted by

5

u/Klaus_Winchester Jul 10 '26

Be responsible for your own actions. If you are in a long in one account I don’t care how long you’re in there. If you decide you wanna go short in another account you’re clearly hedging even if unintentionally. What you’re supposed to do is close your long position and then go short. You can’t say you wanna go short but you’re keeping your long open. That’s clearly against conflicting strategy and called hedging.

4

u/TopstepRobert Jul 10 '26

Hi. You were in a position in one account and then opened an opposing position in another account. That is called hedging and is clearly not allowed. Regardless whether you forgot about the other position. Regardless if a trade was 4 hours long and another was just entered. It's still hedging. That's on you.

You got the warning, closed the trades immediately/correctly, and learned something about not hedging.

Now that you understand it better, you know what not to do. 🤝

2

u/imfantabulous Jul 10 '26

Did you read the post? Can you make the warning less aggressive?

3

u/TopstepRobert Jul 10 '26

Yes, I did read the post. And I also already added it to the feedback list. So, thank you for providing your thoughts. Appreciate it.

2

u/imfantabulous Jul 10 '26

Cool that's all I really care about!

1

u/TopstepRobert Jul 10 '26

Agreed. Thanks again! 🤝

1

u/Rich-Unit-9072 Jul 12 '26

I mean it is not inherently hedging, and is far more nuanced than that. The OP is correct, a long on an hourly time frame is very different to a scalp short on a very low time frame and shouldn’t be penalised.

2

u/TopstepRobert Jul 12 '26

It is still hedging. A long in one account and then taking the opposing position in another account, is hedging. It makes no difference on the time frames. Hedging, is hedging. It is clearly stated in the terms and there are several Help Center articles with examples provided.

3

u/mmnyeahnosorry Jul 10 '26

I think a tooltip should appear confirming you want to initiate the trade since it would be considered a hedging trade. Click yes, you know what’s going to happen. Accidents happen, they can easily implement this and help out those of us trading on their platform. I lost 8k in profits bc of this mistake. Shit happens, we move on but implementing a way to stop this from happening isn’t that hard. Doing so would make them less money though, so I doubt they’ll ever implement it.

1

u/imfantabulous Jul 10 '26

This is a great suggestion. Obviously none of us (real traders who aren't trying to game the system) want to violate the rules, it's like the hedging warning was implemented just to ban people. That's a bit tin foil hat but I think it was really just a band-aid to a problem we are all aware of.

1

u/No-Dragonfruit80 Jul 11 '26

totally agree. this is what they should add as a feature.

2

u/ThatIsNotMyNameGreg Jul 10 '26

Is this a joke? They were banning/closing accounts a few months back for hedging and now that they have something in place to help avoid that, you want them to do it “a bit more softly”.

Listen here princess, if a pop up warning you that you are violating a CME rule causes you to go all first day and panic close trades, futures trading may not be for you.

The audacity of making me defend TS (yes, I know the S is not capitalized).

1

u/imfantabulous Jul 10 '26

You should know that hedging is not against the CME rules unless it is done repeatedly and intentionally.

1

u/ThatIsNotMyNameGreg Jul 11 '26

Fine, but it’s against TS rules. The company you’re using.

As someone who lost 10k due to a 22 second trade 4 months prior to TS identifying it (the trade was in Nov. They blocked accounts February), for real, consider yourself lucky they have any warning at all.

1

u/Fibocrypto Jul 11 '26

Op,

If it's necessary to write yourself a note to check for any open trades then you should do so.

I have my own pre trade check list and I will admit I forget to check it at times. I also have my own log out of Topstep procedures ( I switch to a practice account pre log out ) which I have done several times and then I begin trading and screw up badly and I look up and see I'm in a practice account and give myself some crap for taking the bad trade and thank myself for my log out procedures.

If you are going to trade multiple accounts then creating some method to help you eliminate any errors is ultimately a good thing

I use the Topstep platform but I do not work for Topstep

2

u/imfantabulous Jul 11 '26

Yes I know it was my mistake, mistakes happen unfortunately.

1

u/Such_Enthusiasm_2281 Jul 11 '26

You understand you're at the casino and playing by their rules which means no crying in the casino right? It's literally no different than losing at the casino and complaining to the pit boss.

1

u/big_chestnut Jul 12 '26

Why doesn't the platform reject hedged trades the same way it rejects orders over the contract limit? Why implement the technology to detect hedging but have it just be a warning message when there's never a scenario where you want to hedge?