What Happens If You Lose Internet During a TradeDay Trade?

Written by Paul

Published on

January 14, 2026

Your internet drops while you're holding 3 ES contracts. You're up $450, no stop loss placed yet, and your screen just froze. What happens to your position? Does it keep running? Do you violate max drawdown while disconnected? Can you reconnect in time to close it manually?

Here's the reality: your open position continues trading in the live market. If you placed a stop-loss order before disconnecting, that order remains active because it's held server-side at the exchange, not on your local computer. If you didn't place a stop loss, your position is completely unprotected until you regain connectivity. Price can move against you by $2,000 while you're frantically resetting your router, and there's nothing you can do about it.

TradeDay's official guidance: "We strongly recommend you do not trade unless you are confident in your internet connection." Translation: if your internet sucks, don't trade. Period. But since disconnections happen to everyone eventually, here's exactly what occurs and how to protect yourself.

Quick heads-up: This article is based on my real experience with TradeDay and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check TradeDay´s website or their faq page.

Your Position Stays Open in the Market

When your internet drops, your trading platform loses connection to TradeDay's servers. Your screen freezes, charts stop updating, and you can't place or modify orders. But your open position doesn't magically close or pause—it continues existing in the live market.

What This Means:

If you're long 5 NQ contracts when internet dies, those 5 contracts remain long. Market keeps moving. Your unrealized P&L keeps changing (you just can't see it). If NQ drops 50 points while you're disconnected, you're down $5,000 and your account might be approaching max drawdown violation.

Server-Side Reality:

Your position exists on TradeDay's broker servers (Tradovate, NinjaTrader via CQG, TradeDayX via Plus500), which are hosted in exchange data centers with 99.99% uptime. Those servers have independent internet connectivity that doesn't depend on your home WiFi or ISP.

When you reconnect, you'll see your updated position P&L reflecting everything that happened while you were disconnected. If you were up $800 when internet dropped and reconnect to find you're down $600, that $1,400 swing happened in real-time—you just couldn't see or respond to it.

Stop-Loss Orders Continue Working (If You Placed Them)

The critical difference between internet disconnection and total account protection is whether you entered a stop-loss order before losing connection.

How Server-Side Stop Losses Work:

When you place a stop-loss order through Tradovate, NinjaTrader, or any trading platform, that order gets transmitted to the exchange servers. The order sits in the exchange's order management system, not on your local computer.

Example:

You buy 2 ES contracts at 4850
Immediately place stop-loss order at 4845 (5 points = $500 risk per contract)
Your stop order transmits to CME servers
3 minutes later, your internet dies
ES drops to 4845
Your stop triggers on the exchange servers and fills you out
You lost $500, but you're protected from further losses

You didn't need to be connected for that stop to work. The exchange servers executed it automatically when price hit your stop level.

If You Didn't Place a Stop:

No stop order = no protection. Your position stays open, unprotected, while you're disconnected. Market can move 100 points against you. Your account can violate max drawdown. And when you reconnect, you're dealing with a disaster that could have been prevented with a 5-second order placement.

Scenario	Stop Loss Placed Before Disconnect	No Stop Loss Placed
Market moves against you	Stop triggers, position closes automatically at defined risk level	Position stays open, losses unlimited until reconnect
Market moves in your favor	Stop stays in place, doesn't trigger, position stays open with profit	Position stays open with profit (but no protection from reversal)
Major news event while disconnected	Stop triggers (possibly with slippage), you're out with defined max loss	Position exposed to 100+ point swings, can violate account
Internet out for 2+ hours	Stop protects you entire time, max loss limited	Position open through multiple market swings, disaster potential

What Happens to Working Orders

Orders already placed in the market (limit orders, stop orders, OCO brackets) remain active on the exchange servers when you disconnect.

Active Orders Continue:

Stop-loss orders: Stay active, trigger when price is hit
Limit entry orders: Stay active, fill when price is hit
Limit profit targets: Stay active, fill when price is hit
OCO brackets: Both sides remain active, one cancels the other when filled

Orders You Can't Place:

Any new orders require an active connection. If you're disconnected and want to:

Place a new stop loss
Modify an existing stop
Enter a new position
Cancel existing orders

You can't do any of these until you reconnect. This is why placing protective stops BEFORE problems occur is non-negotiable.

Reconnection Process and Regaining Control

When your internet comes back, your platform doesn't automatically reconnect in many cases—you need to manually trigger reconnection.

Tradovate Reconnection:

Tradovate web and desktop platforms usually auto-reconnect within 10-30 seconds once internet is restored. You'll see "Reconnecting..." status briefly, then live data resumes.

If auto-reconnect fails:

Close Tradovate completely
Reopen and log in through members.tradeday.com (NOT directly at tradovate.com)
Select your trading account
Platform loads with current position status

NinjaTrader Reconnection:

NinjaTrader typically requires manual reconnection:

Go to Tools → Connections
Click "Disconnect" if it still shows connected (clears the stale connection)
Click "Connect" to establish fresh connection
Data feed resumes, positions update

TradeDayX Reconnection:

Usually auto-reconnects. If not:

Log out completely
Close browser/app
Reopen and log in fresh through members.tradeday.com

Critical: Check Your Position Status Immediately

The instant you reconnect, check:

Are you still in the position?
What's your current P&L?
Did your stop loss trigger while disconnected?
Is your account approaching max drawdown?

Don't assume everything is fine. Price may have moved significantly during your disconnection.

Using Mobile Trading as Backup

TradeDay strongly recommends downloading Tradovate's mobile app as backup access. If your home internet fails, you can manage positions from your phone via cellular connection.

Mobile Trading Setup:

Download Tradovate mobile app (iOS or Android) before you need it. Don't wait until you're in a crisis to figure out mobile access.

Login Process:

Open Tradovate app
Log in using your TD_username and password (same credentials as desktop)
Select your trading account from the list
You'll see current positions, orders, and account balance

What You Can Do on Mobile:

Close open positions
Modify or cancel existing orders
Place new orders (if needed)
Check account balance and P&L
View charts (limited compared to desktop)

What's Limited on Mobile:

Smaller screen makes precise order placement harder
Fewer chart indicators and drawing tools
No multi-monitor workspace
Typing and order entry slower than desktop

The Real Use Case:

Mobile isn't for active trading. It's for emergency position management when your primary setup fails. If you're holding 5 ES contracts and your home internet dies, mobile lets you close those positions or move your stop to breakeven while you troubleshoot your main connection.

Does Internet Disconnection Count as a Rule Violation?

No. Losing internet isn't a TradeDay rule violation—it's a personal risk management problem.

What Doesn't Violate:

Internet drops while you're in a position
You're unable to close a position due to disconnection
Your P&L swings negative while disconnected
You're disconnected during market hours

What Can Violate (As a Result of Disconnection):

If your position moves against you while disconnected and hits max drawdown, you violated the drawdown rule. The fact that you were disconnected doesn't excuse the violation.

Example:

You're long 10 NQ contracts
Internet dies
NQ drops 50 points while you're disconnected
Your account hits max drawdown threshold
When you reconnect, account is terminated

The disconnection didn't violate the rules. Hitting max drawdown violated the rules. The disconnection was just the reason you couldn't prevent it.

TradeDay's Position:

Their terms explicitly state: "If you breach a drawdown limit because our software did not liquidate your position or prevent orders from being filled, TradeDay will not reset the account."

This extends to internet disconnection. They won't reverse a drawdown violation because you lost internet. Your risk management is your responsibility, which means having stop losses in place before problems occur.

Risk Management Strategies for Connection Issues

Here's how to protect yourself from internet-related disasters:

Strategy 1: Always Enter Stops at Position Entry

The instant you enter a position—before you even think about targets or holding time—place a stop-loss order. This is non-negotiable if you want protection from disconnection.

Suggested Stop Placement:

ES trades: 10-15 point stops (depending on timeframe)
NQ trades: 25-40 point stops
Micros (MES/MNQ): Same point values as full contracts, smaller dollar risk

Place stops based on your strategy and account size, but ALWAYS place them.

Strategy 2: Use OCO Brackets for Every Trade

OCO (One-Cancels-Other) brackets automatically place both stop loss and profit target when you enter a position. If you get disconnected, both orders remain active. Whichever hits first cancels the other.

How to Set Up OCO in Tradovate:

Right-click chart → Trade → Buy/Sell
Enable "Bracket" mode
Set stop loss distance
Set profit target distance
Both orders place simultaneously with entry

Strategy 3: Have Mobile App Ready Before You Need It

Download Tradovate mobile app. Log in at least once to verify credentials work. Add it to your home screen. Keep your phone charged and nearby during trading hours.

When disaster strikes, you don't want to be fumbling with app downloads and password resets.

Strategy 4: Use a UPS (Uninterruptible Power Supply)

A $100 battery backup unit for your computer and router prevents disconnections from brief power flickers. Most internet "drops" are actually power interruptions that reset routers.

A UPS keeps your equipment running through 10-30 minute power outages, giving you time to close positions or place stops if you know longer outage is coming.

Strategy 5: Have Backup Internet Connection

Mobile hotspot capability (via phone) or a secondary ISP connection provides redundancy. If your primary internet fails, switch to hotspot and reconnect via mobile data.

This isn't for active trading—mobile data has higher latency and lower reliability. But it's sufficient for emergency position closing.

Platform-Specific Disconnection Behavior

Different platforms handle disconnection differently:

Tradovate:

Auto-reconnects when internet restored (usually)
Open positions visible immediately on reconnect
Working orders remain active throughout disconnection
Stop losses are rock-solid server-side
Platform shows "Connection Lost" banner when offline

NinjaTrader:

Requires manual reconnection via Tools → Connections
Open positions may not update immediately after reconnect (need to refresh)
Working orders stay active
Stop losses are server-side but may need connection refresh to see execution confirmation
More stable connection overall but harder to reconnect quickly

TradeDayX:

Browser-based, auto-reconnects when internet restored
Entire platform reloads on reconnect
Position status updates immediately
Working orders continue server-side
Can close browser and reopen fresh to force reconnection

What If You're Approaching Max Drawdown During Disconnection

This is the nightmare scenario: you're in a position, market is moving against you, you're getting close to max drawdown, and your internet dies.

What Happens:

If you have a stop loss placed, it will trigger if price hits your stop level, potentially before you reach max drawdown. You take the loss defined by your stop and your account survives.

If you don't have a stop loss, the position stays open. If market continues moving against you and hits your max drawdown threshold, your account violates. When you reconnect, you see "Account Terminated - Max Drawdown Violation" status.

Can You Appeal?

No. Internet disconnection doesn't excuse drawdown violations. TradeDay's position is that proper risk management includes protective stops specifically to handle scenarios where you can't manually manage positions.

The Preventable Tragedy:

Every trader who violates drawdown during a disconnection could have prevented it by placing a stop loss. Yes, stops can get hit during temporary market swings. Yes, you might exit a trade that would have recovered. But you'll still have an account. That's the tradeoff.

Related TradeDay Resources

TradeDay Risk Settings - Configuring platform protective features
TradeDay Maximum Drawdown Rule - Understanding the violation trigger
TradeDay Tradovate Setup - Platform configuration and reconnection
TradeDay Mobile Trading - Using mobile app as backup
TradeDay Lost Funded Account - What happens after drawdown violation
TradeDay Prohibited Practices - Rules that can be violated during issues
TradeDay Position Limits - Maximum contracts per trade
How to Pass TradeDay Evaluation - Risk management fundamentals

FAQ: Internet Disconnection During Trading

Will my position automatically close if I lose internet?

No. Your position stays open in the market. Only orders you've already placed (like stop losses) will execute if triggered. Without a stop loss, your position is unprotected until you reconnect.

Are stop-loss orders safe if my internet drops?

Yes. Stop-loss orders are held server-side at the exchange, not on your computer. They continue working even if you're disconnected. This is why placing stops immediately after entering positions is critical.

Can I reconnect via mobile if my home internet fails?

Yes. Download Tradovate mobile app as backup. Log in using your TD_username and password. You can close positions, modify orders, and manage risk from your phone via cellular connection.

What happens if I hit max drawdown while disconnected?

Your account violates and terminates. Internet disconnection doesn't excuse drawdown violations—TradeDay expects traders to have protective stops in place before issues occur.

Do working orders cancel when I disconnect?

No. Orders already placed (stops, limits, profit targets) stay active on exchange servers. They'll continue working and can fill while you're disconnected.

How long does reconnection take?

Tradovate usually auto-reconnects in 10-30 seconds once internet is restored. NinjaTrader may require manual reconnection via Tools → Connections. TradeDayX reloads the browser platform automatically.

Can I appeal a violation that happened during internet outage?

No. TradeDay doesn't reverse violations due to internet issues. Their position is that proper risk management includes having stops in place to protect against scenarios where you lose connection.

Should I keep trading if my internet is unstable?

No. TradeDay explicitly recommends not trading without a confident internet connection. If your connection is unreliable, fix it before trading or expect to face uncontrolled losses during disconnection events.