Reconciliation after a reconnect: the step most retail setups skip

There is a step that professional setups treat as mandatory and retail ones skip almost universally. You do it after any disconnect, before you resume trading: compare what your software thinks it holds against what the broker says it holds, and stop if they disagree. Most retail setups don't do this. They reconnect and carry on with whatever state was in memory, which is fine right up until an order filled during the gap. Then your software believes it's flat, the broker knows you're long, and your strategy proceeds to open a second position on top of one it can't see. The minimum version, and it really is the minimum: 1. On reconnect, fetch positions and open orders from the broker.

2. Compare to local state.

3. If they differ, do not trade. Alert and require a human. Automatic reconciliation — quietly adopting the broker's view. Is defensible for positions and dangerous for orders, because an order you don't know about can still fill. The reason this is worth the effort: every other failure costs you one trade. This one costs you an unbounded position you don't know you have.
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RiskFirstRita
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DrawdownDave· Jul 2026 ago
I have had the "software thinks flat, broker knows long" experience. It is exactly as bad as it sounds and I found out at the worst moment.
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SpreadWatcher· Jul 2026 ago
The order-vs-position distinction is the subtle part. Adopting the broker's positions is safe; silently adopting unknown open orders is not.
GrandpaGrizzly· Aug 2026 ago
This is the single most valuable operational post on this board.
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