News Trading
Everything about the news trading restriction — what counts as major news, the 5-minute window rule, how to check the economic calendar, and alternative approaches.
What It Means
Trading during major economic news releases is restricted on both evaluation and funded accounts. You cannot open new positions or hold existing positions during a window starting 5 minutes before and ending 5 minutes after a major news event. If you have a position open during this restricted window, it is treated as a violation regardless of whether the trade makes or loses money.
What Counts as Major News
Major news events are high-impact economic releases that consistently create significant market volatility. These include but are not limited to:
- Non-Farm Payrolls (NFP) — first Friday of every month, 8:30 AM ET
- Consumer Price Index (CPI) — monthly inflation data
- Federal Reserve interest rate decisions (FOMC) — 8 times per year
- Gross Domestic Product (GDP) — quarterly economic growth data
- Retail Sales — monthly consumer spending report
- Unemployment Rate — monthly employment data
- Industrial Production / Manufacturing PMI — sector economic health
How to Check the Calendar
Use Forex Factory, Investing.com, or the economic calendar built into your trading platform. Filter for "high impact" or "red folder" events. Check the calendar every morning before you start trading. Most events are scheduled and visible days in advance.
The 5-Minute Window Explained
The restriction is time-based, not outcome-based. If a news event is scheduled for 8:30 AM ET, the restricted window runs from 8:25 AM to 8:35 AM ET. During this window, you must not have any open positions. If you have a position open that you planned to hold through the news, you must close it before 8:25 AM. You can re-enter after 8:35 AM once the initial volatility spike has passed.
Alternative Approaches
Instead of trading the news event itself, consider waiting 15-30 minutes after the release for volatility to settle. The market often establishes a new range within the first 30 minutes after a major release, and trading within that range is perfectly acceptable. You can also trade the retracement after the initial spike, which often provides clearer technical setups.
NFP is scheduled for 8:30 AM. You close your open position at 8:20 AM. You wait until 8:45 AM to see where the market settles, then enter a trade based on technical levels.
This correctly respects the 5-minute window and waits for initial volatility to subside.
CPI is scheduled for 8:30 AM. You have a EUR/USD position open at 8:28 AM expecting the news to move in your favour. The trade gaps through your stop loss.
Any open position during the restricted window is a violation, even if you intended to close it or it ended up profitable.
Why the Restriction Exists
Major news events create extreme volatility with unpredictable price spikes and slippage. A trader on the right side of a news move could generate disproportionate profits in seconds, which undermines the evaluation's purpose of measuring consistent trading skill. Conversely, a trader on the wrong side could lose a large portion of the account instantly, bypassing the drawdown protections. The restriction levels the playing field and protects both traders and the firm.
Common Mistakes
- Forgetting to check the economic calendar before trading
- Setting stop losses too tight during known news windows — slippage can exceed your stop
- Leaving positions open while away from the desk during scheduled news events
- Assuming low-impact events are also restricted — they are not, but it is safest to avoid all news trading