Updated 2026-03-08
The Funded Trader News Trading Policy Rule Explained
The Funded Trader
Quick Answer
The Funded Trader allows news trading during all high-impact economic news events across all account phases.
This policy permits trading during major economic announcements like NFP, FOMC, and GDP releases without restrictions. The rule applies to both challenge and funded phases, allowing traders to capitalize on volatility spikes. There are no consequences for news trading as it's explicitly permitted.
Key Rule Details
Policy
Allowed
Detail
News trading enabled on multiple challenges
Applies To
All high-impact news (NFP, FOMC, CPI)
Enforcement
Automated — breach triggers account review
Phases
Challenge and Funded
Calculation Example
Common Mistakes
Avoiding News Trading Unnecessarily
Many traders assume news trading is forbidden and miss profitable opportunities during high-impact events. This leads to reduced profit potential when major volatility spikes occur during NFP or FOMC announcements. On a $100,000 account, avoiding a 50-pip EUR/USD move during news could mean missing $500+ in potential profits.
Overconfidence During News Events
Traders assume permission means guaranteed safety and risk excessive position sizes during volatile news releases. High-impact news can cause 100+ pip moves in seconds, turning a 2% account risk into a 10% loss. A $100,000 account trading 5 lots on NFP could face $5,000+ drawdown from a single adverse move.
Ignoring Spread Widening
Traders enter positions without checking spread costs during news events, assuming normal trading conditions apply. Spreads can widen from 1 pip to 20+ pips during major releases, increasing entry costs significantly. A standard 1 lot EUR/USD trade could cost $200 instead of $10 due to spread expansion.
Poor News Calendar Awareness
Traders enter positions without knowing upcoming high-impact releases, getting caught in unexpected volatility. This leads to unplanned exposure during events like surprise central bank announcements or geopolitical news. A routine swing trade can turn into a news-driven loss when NFP releases differ drastically from expectations.
Protection Strategies
Maintain Conservative Position Sizing During News
Limit position sizes to 0.5-1% risk per trade during high-impact news events instead of normal 2% risk. This accounts for increased volatility and potential slippage during major releases. Use smaller lot sizes to maintain the same profit targets while reducing downside exposure during unpredictable news movements.
Use Pending Orders With Buffer Zones
Place buy/sell stops 10-20 pips away from current price before news releases to avoid immediate whipsaws. This strategy captures breakout moves while avoiding the initial volatility spike that often reverses. Set orders far enough to clear normal market noise but close enough to catch genuine directional moves.
Set Price Alerts For Major Events
Configure alerts 15-30 minutes before high-impact news releases like NFP, FOMC, and GDP announcements. This ensures you're actively monitoring positions and can adjust stops or close trades if needed. Automated alerts prevent getting caught off-guard during unexpected market reactions to news releases.
Avoid Trading Low-Volume Currency Pairs
Focus on major pairs like EUR/USD, GBP/USD, and USD/JPY during news events for better liquidity and tighter spreads. Exotic pairs experience extreme volatility and wider spreads during news, making profitable trading more difficult. Stick to high-liquidity instruments that can handle large volume without excessive slippage during major announcements.
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Frequently Asked Questions
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on The Funded Trader's official website before purchasing a challenge. Updated 2026-03-08.