In our commitment to fair trading practices and in recognition of the volatile nature of markets around high-impact news events, we are implementing a specific rule concerning the timing of trades around news events for simulated Funded accounts.
Any profits realized from trades executed within a 6-minute window before or after a high-impact news event (Red-Folder News) will not be counted towards overall profit calculations. This rule is designed to mitigate the risks associated with news-based market volatility.
It is not permissible to open new trades during the 12-minute window (6 min prior to and after the news event). However, you are allowed to close any existing position executed prior to the over all 12-minute time window. Should you decide to initiate any new trades during this window, please be aware that while losses will be recognized, profits will not contribute to your payout.
Let’s run a few examples:
Trader X takes a trade 2 hours prior to the news event and is not around on the charts at the time of the event. If the news event pushes the trade to the trader’s take profit, the profits will be accounted for.
Trader Y trades a high-impact news event, CPI, and takes a trade on gold (XAU/USD) 1 minute before the event is released. The trader then closes the trade 2 minutes later. Profits from this trade will not be accounted for.
Trader Z trades a high-impact news event, NFP, and takes a trade on gold (GBP/USD) 5 minute before the event is released. The trader then closes the trade 4 minutes later (which is still prior to the news release). Profits from this trade will not be accounted for.
A large amount of traders use strategies they wouldn’t employ on a live trading environment. The goal of a evaluation firm is to provide a simulated trading environment where clients trade in imitated live conditions. Learning from skill in these, they can then deploy their learned strategies on live environment.
Note: This rule applies only to Simulated Funded Accounts. News Trading is allowed for Simulated Challenge Accounts in all 4 of our programs.
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