futures-trading Intermediate

Can You Use Bots on TopstepX? Rules, Limits and Setup Guide 2026

Sentinel Team · 2026-03-23

Key Takeaways

The question comes up constantly in trading forums and Discord servers: can you actually use trading bots on TopstepX? The short answer is yes, and TopstepX has built dedicated infrastructure to support algorithmic trading. But the rules around how you can automate are specific, and breaking them can cost you your funded account.

This guide covers the complete TopstepX automation policy as of 2026, the technical requirements for connecting a bot, the restrictions you must respect, and step-by-step instructions for setting up compliant automated trading.

TopstepX Official Automation Policy

TopstepX is one of the most bot-friendly prop firms in the industry. Unlike many competitors that restrict or outright ban automation, TopstepX has taken the opposite approach by building API infrastructure specifically for algorithmic traders.

Here is what their official policy states:

What Is Allowed

What Is Prohibited

The Liability Disclaimer

TopstepX makes it clear that they are not responsible for any issues caused by your bot. According to their help center, orders made using third-party or custom-built API tools are not eligible for review, adjustment, or reversal. All orders executed via the API are considered final. If your bot places an unintended trade or malfunctions, TopstepX will not reverse it.

This means thorough testing before going live is not optional -- it is essential.

The API Access Add-On

To use any automated trading system with TopstepX, you need their API Access add-on. Here are the details:

Cost and Billing

What You Get

Technical Specifications

The API connects to the ProjectX trading infrastructure that powers TopstepX. Key endpoints:

The WebSocket connection via SignalR provides real-time access to account updates, order status changes, position updates, balance changes, and market quotes. This is critical for bots that need to react to market conditions in real time rather than polling REST endpoints.

For a complete technical walkthrough, see our TopstepX API integration guide.

The VPS Prohibition -- Why It Matters

The single most important restriction for bot traders is the VPS prohibition. This rule has significant implications for how you architect your automated trading setup.

Why TopstepX Bans VPS

TopstepX bans VPS for several reasons:

  1. Identity verification: They need to verify that the person trading is the account holder. VPS usage makes it easier to mask who is actually controlling the trading
  2. Geographic compliance: Certain trading regulations require knowing where traders are physically located
  3. Preventing multi-account abuse: VPS makes it easier to run identical strategies across multiple accounts from different IP addresses, which violates their terms
  4. CME compliance: The CME Group requires prop firms to maintain certain standards about trader identification

How TopstepX Detects VPS

While TopstepX does not publicly disclose their detection methods, the industry standard approaches include:

What Happens If You Get Caught

If TopstepX detects VPS or VPN usage, the consequences can include:

This is not a slap on the wrist. You lose everything. Do not try to circumvent the VPS restriction.

The Compliant Alternative

The solution is straightforward: use a web-based trading platform that runs on the platform provider's infrastructure rather than a VPS you control. When you access a web application through your browser, you are using your personal device (your laptop, your desktop, your phone). The fact that the application's backend runs in the cloud is no different from using any other web service.

Sentinel Bot is designed with this architecture. Your strategy logic runs on Sentinel's cloud infrastructure, and you interact with it through your web browser from your personal device. This is structurally compliant with TopstepX's VPS rules because you are not deploying, managing, or accessing a VPS.

Learn more about how Sentinel handles this in our prop firm trading bot guide.

Step-by-Step: Setting Up a Bot on TopstepX

Here is the complete process for getting automated trading running on your TopstepX account.

Step 1: Subscribe to API Access

  1. Log in to your TopstepX account at topstep.com
  2. Navigate to Account Settings or the API section
  3. Subscribe to API Access ($29/month)
  4. Wait for confirmation that API access is active on your account

Step 2: Generate API Credentials

  1. Once API access is active, go to the API management section
  2. Generate your API key and secret
  3. Store these credentials securely -- treat them like passwords
  4. Note the environment: make sure you are using the correct endpoint (live vs. simulation)

Step 3: Choose Your Bot Platform

You have several compliant options:

Sentinel Bot (recommended): Full-stack platform with backtesting, strategy builder, and execution. No external tools needed. Start your free trial here.

PickMyTrade: Signal relay from TradingView. Requires a TradingView subscription for signal generation. Good if you already have TradingView strategies.

TradersPost: Signal relay with multi-asset support. Higher cost but more flexibility in signal sources.

Custom bot: Build your own using the ProjectX API directly. Requires programming skills and significant development time.

Step 4: Configure Risk Management

Before going live, configure these critical risk parameters:

Step 5: Test on Simulation

TopstepX provides simulation environments for testing. Before going live:

  1. Connect your bot to the simulation account
  2. Run for at least 3-5 trading days
  3. Verify that order placement, position sizing, stop-loss, and take-profit all work correctly
  4. Confirm the flatten time mechanism works
  5. Deliberately test edge cases: what happens when the daily loss limit is hit? What happens at flatten time with an open position?

Step 6: Go Live

  1. Switch your bot's configuration to the live account credentials
  2. Start with the smallest position size your strategy allows
  3. Monitor actively for the first 2-3 trading days
  4. Gradually increase to your target position size once you confirm live execution matches simulation

The isAutomated Flag: CME Compliance

Every order placed by an automated system through TopstepX must include the isAutomated flag. This is not a TopstepX requirement -- it is a CME Group Rule 575 regulatory requirement for all algorithmic trading on CME exchanges.

When sending orders through the API, your bot must:

  1. Set the isAutomated field to true on every order
  2. Maintain this flag consistently -- do not switch between manual and automated flags on the same session
  3. Understand that CME compliance officers can audit automated order flow

Failure to properly flag automated orders is a regulatory violation that can result in CME-level penalties, not just TopstepX account actions.

What Contracts Can You Trade With a Bot?

TopstepX supports all CME-listed futures contracts for automated trading. The most commonly automated contracts include:

| Contract | Symbol | Tick Size | Tick Value | Daily Range (typical) |

|---|---|---|---|---|

| E-mini NASDAQ-100 | NQ | $0.25 | $5.00 | 150-300 points |

| Micro E-mini NASDAQ | MNQ | $0.25 | $0.50 | 150-300 points |

| E-mini S&P 500 | ES | $0.25 | $12.50 | 30-60 points |

| Micro E-mini S&P | MES | $0.25 | $1.25 | 30-60 points |

| Crude Oil | CL | $0.01 | $10.00 | $1-3 |

| Gold | GC | $0.10 | $10.00 | $15-30 |

| E-mini Dow | YM | $1.00 | $5.00 | 200-400 points |

| Russell 2000 | RTY | $0.10 | $5.00 | 15-30 points |

For evaluation accounts, we recommend starting with micro contracts (MNQ, MES) to manage risk. The smaller tick value means each trade carries less PnL impact, giving you more room for error during the learning phase.

To backtest strategies on these contracts before going live, see our futures backtest software guide.

Common Mistakes When Botting on TopstepX

1. Running a Bot Through a VPS

This bears repeating because it is the most common and most costly mistake. Do not use AWS, Google Cloud, DigitalOcean, or any VPS to run your bot. Use a web-based platform or run the bot directly on your personal computer.

2. Not Testing the Flatten Mechanism

If your bot does not close positions by 3:10 PM CT, you will receive a violation. Many traders test their entry and exit logic thoroughly but forget to test the flatten mechanism. Simulate the scenario where your bot has an open position at 3:05 PM CT and verify it closes correctly.

3. Ignoring the Trailing Drawdown

TopstepX's trailing drawdown moves up with your account balance. A bot that is configured with a static daily loss limit will not account for the narrowing risk window as profits accumulate. Your risk management should dynamically adjust based on the current trailing drawdown position.

4. No Kill Switch

Every bot needs a kill switch -- a way to immediately stop all trading and flatten all positions. If your bot malfunctions, you need to stop it instantly. This should be accessible from your phone, not just your desktop.

5. Trading Through High-Impact News

FOMC, NFP, CPI, and other major economic releases cause extreme volatility. Stops can get blown through, and slippage can be catastrophic. Add a news calendar filter that pauses your bot 15 minutes before and 30 minutes after major scheduled events.

6. Not Accounting for API Latency

The ProjectX API has some inherent latency. Orders do not execute instantly -- there is network latency, server processing time, and exchange queue time. Build your strategy to be tolerant of 100-500ms execution delays. Strategies that depend on microsecond precision will not work well through the API.

TopstepX Bot Trading vs Other Prop Firms

How does TopstepX's bot policy compare to other major prop firms?

| Prop Firm | Full Automation | API Available | VPS Allowed | Notes |

|---|---|---|---|---|

| TopstepX | Yes | Yes ($29/mo) | No | Most bot-friendly overall |

| Apex Trader Funding | No | Via Tradovate | Yes | Full automation prohibited |

| Tradeify | Conditional | Via Tradovate | Yes | Must own your bot, no shared strategies |

| Take Profit Trader | Yes | Via Tradovate | Yes | Allows automation through Tradovate API |

| My Funded Futures | Yes | Via Tradovate | Yes | Allows automation through Tradovate API |

| Elite Trader Funding | Yes | Via Tradovate | Yes | Allows automation through Tradovate API |

TopstepX is unique in having its own native API (through ProjectX) rather than relying on Tradovate. This gives TopstepX more control over the API experience but also means tools built for Tradovate do not automatically work with TopstepX.

For the complete breakdown of every prop firm's automation policy, see our prop firm automation policy guide.

Is Bot Trading on TopstepX Worth It?

The value proposition depends on your situation:

Bot trading on TopstepX makes sense if:

It might not make sense if:

For most futures traders who have a systematic edge, TopstepX's bot-friendly policy combined with a compliant platform like Sentinel Bot provides the most straightforward path to funded account automation.

Ready to automate your TopstepX trading? Sentinel Bot connects to TopstepX with zero VPS requirements. Build, backtest, and deploy your strategy from your browser. Start your free trial -->

FAQ

Q: Do I need to tell TopstepX that I am using a bot?

The isAutomated flag on your orders automatically identifies your trading as automated. You do not need to separately notify TopstepX, but you should ensure your orders are properly flagged per CME Rule 575. This flag is handled automatically by most bot platforms including Sentinel Bot.

Q: Can I switch between manual and automated trading on the same TopstepX account?

Yes. TopstepX allows both manual and automated trading on the same account. You can manually enter trades during the day and have your bot manage exits, or run your bot during certain hours and trade manually during others. Just ensure the isAutomated flag is set correctly for each order type.

Q: What happens if my bot places a bad trade on TopstepX?

TopstepX will not reverse any API-executed trades. All orders are final. This is why thorough simulation testing is critical before going live. If a bug in your code causes a large loss, you bear full responsibility.

Q: Can I use multiple bots on one TopstepX account?

Yes, you can run multiple automated strategies on a single TopstepX account. However, you need to coordinate risk management across all bots so their combined exposure does not exceed your daily loss limit or position size restrictions.

Q: Is the TopstepX API available during the Trading Combine or only for funded accounts?

The API is available during both the Trading Combine (evaluation) and the Funded Account stage. You can automate from day one of your evaluation. The $29/month API fee applies regardless of which stage you are in.

Q: How fast is the TopstepX API for order execution?

The ProjectX API typically processes orders within 100-500ms including network latency. This is fast enough for most swing and day trading strategies but not suitable for high-frequency trading. If your strategy requires sub-10ms execution, the API is not the right tool.

Related Articles

Disclaimer: This article is for educational purposes only. Trading futures involves substantial risk of loss and is not suitable for all investors. Past performance does not guarantee future results. TopstepX rules and policies may change -- always verify current policies directly at topstep.com before making trading decisions. Never risk more than you can afford to lose.