Trading During News Events on Prop Firm Accounts: Do or Don't?
NFP, CPI, FOMC — these three-letter acronyms can make or break a prop firm account in seconds. Understanding how to handle news events is critical for funded traders.
Which Firms Restrict News Trading?
| Restriction | Firms | Details |
|-------------|-------|---------|
| No restriction | FTMO, The5ers, Funded Trading Plus | Trade freely during any event |
| Close before news | TopStep, some futures firms | Must close positions 2-5 min before |
| Reduced leverage | Some forex firms | Leverage cut during major events |
| Post-news only | Rare | Can only enter after the release |
Always check your specific firm's rules. Some firms have added news restrictions in 2026 that didn't exist before.
High-Impact Events to Watch
Tier 1 (Market-Moving)
- Non-Farm Payrolls (NFP) — First Friday of each month, 8:30 AM ET
- CPI / Inflation Data — ~10th of each month
- FOMC Rate Decisions — 8 times per year, 2:00 PM ET
- GDP Reports — Quarterly
Tier 2 (Significant)
- Retail Sales, Jobless Claims, PMI data
- Central bank speeches
- Earnings reports (for stock index futures)
Tier 3 (Minor)
- Housing data, trade balance, factory orders
- Usually safe to trade through
Strategies for Prop Traders
Strategy 1: Sit Out Entirely
The safest approach. Close all positions 15-30 minutes before any Tier 1 event. The market will be there after the news.
Pros: Zero risk of news-related loss
Cons: Missing potential opportunities
Strategy 2: Reduce Size
Cut position size to 25-50% of normal before news events. If the event goes against you, the smaller size keeps your daily loss manageable.
Strategy 3: Wait for the Reaction
Let the initial spike happen (usually 5-15 minutes). Once the dust settles and a direction is clear, enter with the trend.
This is the most popular approach among successful funded traders because:
- You avoid the unpredictable initial spike
- You get clearer risk-reward setups
- Spreads normalize after the first few minutes
Strategy 4: Straddle (Advanced)
Place orders on both sides of the current price, expecting a large move in either direction. This works best when volatility is expected but direction is unclear.
Warning: Slippage during news can be severe, making straddles unprofitable at some firms.
Using the Economic Calendar
PropTally's built-in economic calendar shows upcoming events with impact ratings. Check it every morning before trading.
Key habit: Before placing any trade, ask yourself:
- Is there a Tier 1 event in the next 2 hours?
- If yes, will I still be in this trade when it hits?
- Can I afford the worst-case move against me?
If the answer to #3 is no, don't take the trade.
Track your performance around news events using the Reports tab — filter by hour to see if your news-trading results are actually profitable.
Start tracking your prop firm payouts
Import trades, monitor drawdowns, and manage multiple funded accounts in one dashboard.
Sign Up Free