Strategy · Updated Oct 31, 2026
News trading strategy for prop traders
A simple game plan for CPI, NFP and FOMC days — built around one goal: keep your funded account alive. Education only — not financial advice.
Step 1: Read the calendar every morning
- Filter to high impact. Focus on US events marked high importance — CPI, the jobs report (NFP) and FOMC.
- Note the exact time in your timezone. CPI and NFP: 8:30 AM ET. FOMC: usually 2:00 PM ET, plus the press conference after.
- Check forecast vs. previous. A big surprise vs. the forecast is what moves price — not the number itself.
- Check your firm's news rule. Some firms flatten you or block trading around releases — see news trading rules by firm.
Upcoming red-folder events
- NFPJobs report / NFP (October data)Fri, Nov 6, 8:30 AM EST
- CPICPI (October data)Tue, Nov 10, 8:30 AM EST
- NFPJobs report / NFP (November data)Fri, Dec 4, 8:30 AM EST
- FOMCFOMC rate decisionWed, Dec 9, 2:00 PM EST
- CPICPI (November data)Thu, Dec 10, 8:30 AM EST
- NFPJobs report / NFP (December data)Fri, Jan 8, 8:30 AM EST
Times in Eastern Time. Sources: BLS CPI, BLS jobs report, Federal Reserve. FOMC decisions typically release at 2:00 PM ET; Fed dates are tentative until confirmed.
Open the full economic calendar →
Step 2: Pick your play
A. Sit it out
Be flat a few minutes before the release and stay out until spreads normalize. The safest option on an evaluation or a fresh funded account.
B. Trade the reaction, not the release
Let the first spike happen. Wait for your normal setup to form after the dust settles, then trade it with reduced size.
C. Hold through it — rarely
Only when your firm allows it, your stop is already far in profit, and a full gap through the stop wouldn't break your daily or max loss. Never place two-sided "news bets" — several firms prohibit them.
Step 3: Protect your drawdown
On news, plan for your stop to fill worse than you set it. Size so even a bad fill is survivable:
MNQ is $2 per point; illustrative numbers. Run your own with the position size & drawdown calculators.
- Intraday trailing accounts: a fast spike in your favor raises your floor even if price snaps back. Take or protect profit quickly. How trailing works →
- Daily loss limits: set your own stop-for-the-day well below the firm's, so one news candle can't end your session.
- Consistency rules: a huge news-day win can push your best day over the limit and delay payouts. Consistency rules explained →
News-day checklist
- Know the release time and your firm's rule.
- Decide: sit out, trade the reaction, or hold — before the open.
- Cut size in half (or more) for anything near the release.
- Write down your daily stop and current drawdown floor.
- Log the day in your EVX trader dashboard.
FAQ
Should prop traders trade CPI, NFP or FOMC?
Only if your firm allows it and your size can survive a bad fill. Many funded traders simply wait until the first move settles, then trade their normal setup.
How long should I wait after a news release?
There's no fixed rule. Some firms block trading for 2 minutes either side; beyond that, wait until spreads tighten and your normal setup appears.
How much should I size down on news days?
Enough that a stop that slips 2–3× still fits inside your daily loss limit and leaves real room on your trailing drawdown. The position size calculator does the math.
What does 'red folder' news mean?
High-impact releases — mainly CPI, the jobs report (NFP) and FOMC rate decisions — that often cause the biggest moves of the week.
Is FOMC different from CPI and NFP?
Yes. CPI and NFP land at 8:30 AM ET before the stock market opens. FOMC decisions usually come at 2:00 PM ET, followed by the press conference, so volatility can come in two waves.