Rules & Guidelines
FOMC, CPI, NFP. These events can move ES 30+ points in minutes. For funded traders, this is where accounts go to die. Know the rules before you trade.
Many prop firms restrict or ban trading during high-impact news events. Others allow it but with conditions. Understanding how your firm handles news trading is critical because a single mismanaged news trade can violate your daily loss limit and your trailing drawdown simultaneously.
This is not about whether you can predict the direction. It is about whether the risk-reward math works inside the constraints of your funded account rules.
No trading within 2 to 5 min of high-impact events. Some firms auto-close open positions.
No new positions during the window, but existing positions can be managed.
Trading allowed but with reduced margin or contract limits. Full responsibility on the trader.
Interest rate decisions + statements
Non-Farm Payrolls, first Friday/month
Consumer Price Index
Producer Price Index
Quarterly releases
Weekly reports for CL traders
Go flat 5 to 10 min before. Wait 15 to 30 min after for volatility to settle. Trade the reaction, not the spike.
Stay in but drop to micros. Set wider stops for slippage. Hard mental stop beyond which you close no matter what.
The best traders do not avoid news entirely. They avoid the chaos and then trade the reaction after the initial spike settles into a directional move. The opportunity is still there, 15 to 30 minutes later when the risk-reward math works again.
Building your evaluation profit through steady execution across multiple sessions and treating news events as bonus opportunities rather than primary strategies is the approach that leads to sustainable funded trading.
Having a predefined plan eliminates in-the-moment decisions that lead to mistakes.
Identify all high-impact events. Note time, instrument affected, and expected volatility. Decide in advance: trade through, go flat, or reduce size.
Going flat? Close all positions now. Staying in? Reduce to 25% to 50% of normal size. Set wider stops. Know exactly where your drawdown floor is.
First 60 seconds: spreads widened, order book thin, fills unreliable. Watch. Wait.
Once initial volatility settles into a directional move, risk-reward improves. This is where the best opportunities appear.
