There currently isn't a function for this (it equates to 'hg forget' and 'git rm --cached'), it's on my list and you can track progress here: https://jira.atlassian.com/browse/SRCTREE-822
 In case anyone doesn't follow the link, this is now implemented and will be part of 1.3.1.
Remove seems to say that it will remove the file permananetly, I do not want to do that. I want to keep the file around but untrack it. I know I could do this via command line and in mercurial as well. Just want to know how to do it in sourcetree.
Thanks for your answer though.
Here's a workaround until 1.31 comes out if the file is in your local working directory. Quit SourceTree and move the file out of the directory. Start SourceTree again. The file will show up as deleted (grey circle); now "remove" the file (red circle) and commit this change. The file will disappear from the directory listing. Now move the file back into the working directory and it will show up as untracked.
This works in 1.30 beta 3; I haven't tried it in 1.29
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