π News Trading Policy
News trading refers to opening or closing trades specifically around scheduled economic releases, central bank speeches, or geopolitical announcements, with the intent to exploit temporary volatility spikes. While closing or managing existing trades during news is permitted, initiating new positions immediately before or after such events is prohibited.
π Why This Rule Exists
It prevents artificial performance inflation, since trades tied to unpredictable spikes do not demonstrate strategy or skill.
It reduces exposure to abnormal slippage and execution risk that can damage both trader results and firm operations.
It helps protect liquidity providers, who may otherwise face heavy stress from clustered orders, rejections, or widened spreads during news events.
π Policy Rule
β Do not open new trades within 2 minutes before and 2 minutes after a scheduled high-impact news release.
β You may close or manage existing trades during news to control risk or exit exposure.
β Take-profits, stop-losses, and partial closes are permitted at all times, even during restricted windows.
π Practical Examples
:pushpin: Prohibited: Opening a 5-lot buy order on NAS100 30 seconds before NFP release.
:pushpin: Prohibited: Entering EURUSD long one minute after an FOMC interest rate decision to catch the initial spike.
:pushpin: Allowed: Closing an existing GBPUSD trade during the release window to reduce exposure.
:pushpin: Allowed: Letting a position hit stop-loss or take-profit during news, as long as it was opened outside the restricted period.
π¨ Risk Team Red Flags
Trade timestamps consistently clustered around major news releases.
Repeated entry patterns designed to take advantage of volatility spikes rather than structured strategy.
Use of EAs or scripts specifically built to βsnipeβ the first ticks following economic announcements.