News Trading Rule | ETX Help Center

Trading Around High-Impact News Events Policy for Funded Accounts

Overview

We are committed to evaluating traders fairly. Trading around high-impact news events can introduce speculative behaviors that do not provide us with sufficient data to assess a trader's true skill and strategy. Therefore, these restrictions are crucial.

Restricted Trading Times for Entry and Exit:

Window for Normal Accounts: For holders of normal accounts, trades opened within a 10-minute window before or after a high-impact news event will not have their gains counted. This measure is in place to discourage speculative trading and to stabilize the trading environment during periods of potential high volatility.

Any trades activated within the prohibited 10-minute window before and after news events, regardless of the order type (Buy Stop, Sell Stop, Sell Limit, Buy Limit, or Market Order), will result in a soft breach and the trades automatically closing.

Recognition of Gains: Gains from trades that are opened outside this 10-minute window and are active during the news event will be recognized. This includes trades that might close during this window if they were triggered by set take profit or stop loss levels.

Soft Breach:

If the news trading rule is violated, any trades that fall within the restricted window will be automatically closed, and any gains, if any, will not be counted. This is considered a soft breach, meaning you can continue trading after the trades are closed.

We are not responsible if a trade is closed for violating this rule and results in a hard breach.

Examples:

Trader A has a normal account and places a trade on NAS100 an hour before a high-impact news event. If this trade reaches its take profit due to market movements triggered by the news, the gains will be recognized, as the trade was initiated well outside the restricted window.
Trader B opens a trade on NAS100 2 minutes before a high-impact news release and closes it 3 minutes after the event. Gains from this trade will not be counted, as it falls within the restricted 10-minute window.

News Trading Policy for Swing Account Holders

Restricted Trading Times for Entry and Exit

Extended Window for Swing Accounts: For swing account holders, trades opened within a 10-minute window before or after a high-impact news event will not have their gains counted. This precaution helps maintain market stability and prevents speculative trading based on news.

Recognition of Gains: Gains from trades that are opened outside the 10-minute window and remain active during the news event will be recognized. This includes trades that close during the window due to predetermined take profit or stop loss levels.

Soft Breach:

Examples:

Trader A has a swing account and places a trade on NAS100 two hours before a high-impact news event. If the trade reaches its take profit due to market moves triggered by the news, the gains will be recognized since the trade was initiated well outside the restricted window.
Trader B opens a trade on NAS100 1 minute before a high-impact news release and closes it 9 minutes after the news. Gains from this trade will not be counted, as it falls within the restricted window.

Protection and Security

These restrictions are not only in place to ensure fair and effective trader evaluation, but also to protect the trader. During periods of high-impact news, there is a heightened risk of account breaches. By limiting trading during these volatile times, we aim to safeguard both the interests of our traders and the integrity of the trading environment at ETX.

Enforcement and Compliance:

Compliance with these trading conditions is mandatory for all normal and swing account holders in simulated (live) funded accounts. Our monitoring systems ensure adherence to these rules, and traders are expected to follow them strictly.

Position Management During News Events:

Positions opened outside the 10-minute restricted window may be maintained through the news event. This policy allows traders to continue managing their positions according to their strategies, without being unfairly penalized for short-term volatility driven by news.

Identifying High-Impact News:

Use the Forex Factory calendar to identify significant market events. Events marked with red folders are considered high-impact and can substantially affect market conditions. Access the calendar here: Forex Factory Calendar.

Access the Forex Factory Calendar: Go to Forex Factory Calendar.
Navigate to the Specific Week: Use the calendar tool to select the week you are interested in, such as the week of April 7, 2024.
Look for High-Impact Events: High-impact news events are typically marked with red icons or labels. These icons are usually shaped like folders or dots.
Compile Your List: Manually compile a list of these high-impact news events by noting down:
- The date and time of the event
- The country or currency affected
- The name of the event (e.g., Non-Farm Employment Change, Federal Reserve Interest Rate Decision, etc.)
Adjust for Your Time Zone: Ensure that the time of each event is adjusted to your local time zone, which can be set in the calendar settings on the Forex Factory website.

Here are some high-impact news events that have occurred. Please note, while we track all high-impact news events, we recommend conducting your own research to stay informed about the timing of these events. Be aware that the times may vary.

Wednesday, April 10

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