We allow news trading for both Phase I and Phase II of any of our challenges.
However, once you are trading a Funded Account connected to our live capital, we have news restrictions for 2 minutes before and after the release of a red folder event - this includes the opening/closing of market orders, and any take profit or stop losses that are triggered within this 4 minute window.
This applies to all FX, Metals, and Indices instruments.
You will be issued a maximum of 2 warnings (soft breaches) - both of which will result in the deduction of any profits made from trades executed within the restricted 6-minute window.
On the third violation, the account will be breached entirely.
Profit deductions are processed on the following business day of the violation. In the event any deductions result in the breach of daily or maximum loss limit, the trader is responsible for the violation.
Please review the restriction table below to see which pairs are prohibited during the following but not limited to news events:
Red Folder Events
It is important to note any red folder events shown in Forex Factory that are not listed in the table above are still counted as news-restricted events. Please see all red folder events here by using the top right filter to only show events with a red "Expected Impact".
Note: Any "All Day" marked red folder events will not be counted as news-restricted events, as there are no specified times for the data releases.
To clarify, you can still trade news only on challenge accounts and it will not be a direct violation. However, you should understand that there are occurrences where slippages occur and the trader is ultimately responsible should one cause a violation of the max drawdown rules. We can not guarantee any profits generated during such high-risk news events and we can’t protect you from any losses taken because the trades may not actually fill or may fill causing a loss once connected to our Proprietary Trading Firm's live capital account.
It is best to avoid trading the specific instruments affected during high-impact news releases, after all, it is the professional way to manage your capital.
Note: You are still expected to trade with a reasonable lot size as if you were trading your own live account.