News trading is fully allowed during Challenge Phases - no restrictions. In Live Simulated Accounts, it's permitted but with limits on Red Label/High-Risk events.
News Trading in Challenges vs. Live Sims
You can trade news freely in evaluations. But in live simulated prop trading, we add guardrails for Red Label events to promote fair, skill based results:
Challenge Phases: No limits - trade, hold, or exit as you like
Live Sims: Restrictions for "Red Folder/Red Label" news (per Forex Factory). You are not allowed to open or close a trade 3 minutes before and after the News release.
Soft Breach Only: Violations deduct profits from affected trades but don't end your account.
Key Restrictions in Live Sim Accounts
For Red Label events (filter on Forex Factory), the 6-minute window (3 min before + 3 min after release) applies only to affected currencies/pairs (e.g., USD news affects EUR/USD, GBP/USD, XAU/USD, and indices like SPX/NAS/DOW).
Profits from violating trades are removed post event - no other penalties.
If a trade is opened more than 3 hours before the news release, profits will count and not be removed, even if closed in the 6-minute window.
To understand which news events are applicable, please visit FOREXFACTORY, which will align with our restrictions filtered by “red folder/red label”.
Pending orders added but not executed during the news window will not be affected in any capacity as they are not buy or sell orders.
NOTE: Opening and closing positions immediately before the news window and after are subject to having your profits removed. We do not promote gambling here and nor do we condone it.
Please familiarize yourself with this calendar and the dates of Red Folder news events. To access the link directly, please click the button below:
We hope that this will promote good risk management and more consistent trading behavior within our trading community and will help clients establish a good, consistent trading pattern.
Disclaimer:
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