Prop firm news trading rules cause more confusion than almost any other rule. One firm bans any trade in a window around a high-impact release, another only discounts the profit made inside that window, and a third has no rule at all. Because a breach can end an evaluation or void a payout, it pays to know exactly which version you are trading under before CPI or an FOMC decision hits the screen.
This guide explains the common rule types, why firms use them, how releases affect crypto and TradFi perpetuals, and a practical routine for news days, whether or not your firm restricts them.
What counts as “news” in prop firm rules
Most rules refer to scheduled, high-impact economic releases on a public calendar: US CPI, the FOMC rate decision and press conference, non-farm payrolls, GDP and central bank decisions elsewhere. Unscheduled events are hard to define in advance, so written rules usually stick to calendar items marked as high impact.
For crypto traders the list is wider in practice. Bitcoin and large altcoins often react to US inflation and rate news, and stock and index perpetuals react to earnings as well. A rule that only names forex releases can still matter to you, because the volatility spills across markets within seconds.
Common types of prop firm news trading rules
- No restriction: you may open, hold and close positions through any release; only the normal loss limits apply.
- Blackout window: no new orders, or no orders at all, for a set number of minutes before and after a listed release.
- Holding ban: positions must be flat before the release, sometimes enforced by an automatic close.
- Profit exclusion: trades are allowed, but profit made inside the window does not count toward the target or a payout.
- Funded-only rule: news trading is free during the evaluation and restricted once the account is funded.
- Strategy bans: specific approaches, such as news scalping with an EA, are prohibited even where ordinary trades are allowed.
Why prop firms restrict news trading
The main reason is execution quality. In the seconds around a release, spreads widen and order books thin out. A simulated account that fills at the last quoted price can book profit that no real order could have captured in that market, and a blackout removes that edge from the evaluation.
The second reason is variance. One trade sized for a release can pass or fail an account in seconds, which measures luck rather than a repeatable process — the same reasoning behind consistency rules. Firms want an evaluation to show how you trade on an ordinary day, not how one coin flip landed.
How firms we compare handle news
| Firm | News rule |
|---|---|
| QATS | No news blackout on the current Crypto and TradFi plans. Loss limits, leverage limits and price checks on market entries apply as usual. |
| The5ers | On High Stakes, trades within two minutes of high-impact news are not allowed. |
| Hola Prime | Some funded accounts restrict trading around high-impact news and close positions before the weekend (reported by an independent review site). |
| Crypto Fund Trader | Allowedwith restrictions: HFT, tick scalping, arbitrage, news-scalping and reverse-trading EAs are banned. |
QATS: no blackout, same loss limits
The current QATS Crypto and TradFi plans do not set a news blackout window, so you can open, hold and close positions through CPI, FOMC or payrolls. A plan can carry a news window, and Rules & objectives shows whether one applies to your account, so check it there rather than assuming.
What does not change on a news day is the risk arithmetic. On QATS Crypto the daily loss limit is 4% of the starting balance, touching it ends the evaluation, and the daily figure counts open positions, fees and funding as well as closed trades. On a $10K account that is $400 — one oversized position stopped out with slippage can use all of it.
QATS also checks market entries. With Max slip set, a market entry that the visible book cannot fill within that distance from the best price is refused, and new entries on a market are held while the same perpetual’s Binance and Bybit prices disagree. Closing a position is never held back by either check.
How to trade around CPI and FOMC
- Check the economic calendar each morning and note the exact release times in your own time zone.
- Decide in advance whether you will be flat, at reduced size or in a planned news trade — never in the last minute.
- If you hold through a release, size so that a stop filled well beyond its price still stays inside your personal daily stop.
- Place protective orders before the release; adding a stop in the middle of a spike is too late.
- Prefer limit entries after the first move over market orders into a thin book.
- For FOMC, plan for two events: the statement and the press conference that follows it.
- After a large win or loss on a news day, stop for the session and review rather than trading the follow-through on emotion.
Gaps, slippage and the daily limit
A stop order becomes a market order when it triggers. If price jumps through your stop, the fill comes at the next available price, which on a release can be far away. Size for the realistic fill, not for the stop level. A common habit is to cut size on release days, or to widen the stop and cut size so the dollar risk stays the same.
On an equity-based daily limit, an open loss counts the moment it happens. A position that dips through the limit for a few seconds and then recovers can still end the account, so the safe assumption on news days is that the worst moment counts. On QATS the daily loss includes open positions as well as closed trades.
Frequently asked questions
01Can you trade news with a prop firm?
It depends on the firm and sometimes on the account stage. Some firms allow it freely, some block a window around high-impact releases, and some restrict only funded accounts. Read the rule text for your exact plan before a release.
02How long is a typical news trading blackout?
Windows are usually a few minutes either side of a listed high-impact release, but the length and the list of releases vary by firm. Some firms publish the affected events in advance; others refer to a public economic calendar.
03Does QATS restrict trading around news?
The current QATS Crypto and TradFi plans set no news blackout window. The plan’s loss limits still apply through every release, and Rules & objectives shows the rules attached to your account.
04Is trading CPI risky on a prop account?
It carries more variance than a normal session: spreads widen, stops can slip and prices can move sharply within minutes. Use smaller size and protective orders placed in advance, or stay flat if your strategy is not built for releases.
Educational content, not investment advice. QATS evaluations and initial funded accounts are simulated; payouts depend on eligibility, verification and the applicable agreement.