What gets a trader called up to a Live Funded Account (LFA)?
Topstep’s Risk Team looks at the totality of information about a Trader to inform an answer to the question “is this Trader ready for Live futures markets?” There are dozens of variables, and some of the most important are listed below:
When did you start trading at Topstep?
Have you ever traded Live before?
What products are you trading?
What time of day are you trading?
Are you trading during high-impact news?
What is your average hold time?
What is your average position size?
Are you trading with a stop loss?
Are you using the risk tools in TopstepX?
Are you trading one account or multiple?
How much variability is there in your trade data?
Payout history
What is your XFA balance?
How many accounts have you traded?
Trading frequency
Things to note with getting a Call Up: Every Trader’s profile contains a unique combination of answers to these questions.
Using the above information, our Risk Team leverages experience and analytics every day to make decisions about which Traders have earned a shot at the Live markets with Topstep’s capital. We are committed to providing our Traders with a low risk opportunity to learn, develop, and earn while on their way to the ultimate goal of Live Funded Trading at Topstep.
Once called up, you can find information on your Live Account Parameters here.
What gets a trader called down from Live via a Shoulder Tap?
A call down from Live, commonly referred to as a ‘Shoulder Tap,’ is an age old practice at proprietary trading firms. A traditional Shoulder Tap is when a Risk Manager at the firm approaches a Trader who is not trading well and literally taps them on the shoulder to tell them that it’s time to call it a day.
The underlying premise is that this Trader has either gone on tilt (letting their emotions take over decision making) or they are simply not reading the markets well and taking losses in excess of what the prop firm will allow in a given period. This cooling-off period often includes restricting the Trader’s size for a period of time, or even sending them to a simulated environment until they regain profitability and confidence.
In the absence of a physical trading desk, Topstep gives the ‘Shoulder Tap’ to our Live Traders virtually.
How Shoulder Tap works at Topstep
A Shoulder Tap at Topstep is an opportunity to move back down to the simulated environment with a single Shoulder Tap Express Funded Account (STXFA) and continue trading a simulated balance of their remaining Live capital. A called-down Trader can still earn profits and take payouts (with standard XFA payout rules) while they build back their consistency.
The Risk Team continues to monitor these STXFAs similar to the larger pool of XFAs being traded every day, and may call that Trader back up to a Live Funded Account through the discretionary process.
This Shoulder Tap process is critical to maintaining integrity and sustainability at any proprietary trading firm.
Examples of trading that may warrant a Shoulder Tap
An example of when someone might get called down to STXFA:
A Trader puts on a 15 lot in NQ 30 seconds ahead of a CPI release with no stop loss, and doubles their Daily Loss Limit due to slippage.
After a period of significant profitability, a Trader goes on a cold streak and hits their Daily Loss Limit 10 days in a row.
Shoulder Tap FAQs
What happens to the remaining LFA reserve if you get called down to STXFA and blow that account?
The remaining LFA reserve is forfeited.
If I start with $30K in Live, does that mean I get called down after I lose $9K (30% drawdown)?
Those are loose guidelines, not hard lines in the sand. Topstep’s Risk Team looks at multiple variables (Amount lost, age of the Live Account, number of winning vs. losing days, past performance, etc.) when making the determination to call down a trader via a Shoulder Tap.
Can I trade multiple XFAs on top of my STXFA?
No. When you’re in a STXFA, you’re limited to that single STXFA
How long do I have to make it back to my Live Funded Account?
Risk will continue to evaluate your trading and make a determination as to when appropriate to call you back up to a Live Funded Account.
Can I use Back2Funded on a Shoulder Tap Express Funded Account?
No. Back2Funded is not available for Shoulder Tap Express Funded Accounts.
How long can I stay in the Shoulder Tap Express Funded Account?
You may remain in the account until you either move back up to the Live Funded Account or the account balance reaches $0 and closes.
Is returning to Live guaranteed after five payouts?
No. Five payouts is a general guideline in risk evaluation, but approval is discretionary and based on overall trading behavior, you can be called up sooner or later than 5 payouts.