News trading is permitted during both Phase I and Phase II of our challenges.
However, when trading a Funded Account linked to our live capital, there are certain news restrictions to be aware of. Specifically, for a period of 2 minutes before and after the release of a red folder event, which includes the opening/closing of market orders and any triggered take profit or stop losses, certain limitations apply.
These restrictions are applicable to all FX, Metals, Crypto, Oil, and Indices instruments.
We encourage traders to exercise caution and adhere to these news trading guidelines when trading with our live capital.
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 4-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 provide clarity, news trading is still allowed on challenge accounts, and it does not directly violate any rules. However, it's important to understand that there may be instances of slippage, and as a trader, you will bear the responsibility if such slippage leads to a violation of the maximum drawdown rules.
During high-risk news events, we cannot guarantee any profits generated, and we cannot shield you from potential losses that may occur due to unfilled trades or trades that result in losses once connected to our Proprietary Trading Firm's live capital account.
It is advisable to exercise caution and consider avoiding trading the specific instruments affected during high-impact news releases. This approach aligns with professional capital management practices.
Note: You are still expected to trade with a reasonable lot size, just as you would if you were trading your own live account.