YRM Prop maintains specific protocols for trading around significant economic events to manage risk and promote consistent performance. Understanding these guidelines is essential for successful trading with our funded accounts.
Major Economic Events Policy
During high-impact economic announcements, volatility can spike dramatically. To protect both traders and capital, we implement the following restrictions:
- No Open Positions: Traders must not hold any open positions 2 minutes before major news releases
- Waiting Period: Trading can resume 2 minutes after the news announcement is released
- Applicable Events: This policy applies to high-impact events only (detailed below)
High-Impact Economic Announcements
The following economic releases are considered high-impact events subject to our trading restrictions:
- Federal Reserve (FOMC) rate decisions and statements
- U.S. Initial Jobless Claims
- U.S. Core PCE (Personal Consumption Expenditures) data
- Non-Farm Payroll (NFP) reports
- CPI and Core CPI inflation data
- GDP releases (Advance, Preliminary, and Final)
- Retail Sales data
- Central bank rate decisions (ECB, BOE, BOJ, etc.)
Recommended Resources
We recommend using one of these economic calendars to monitor upcoming events:
- Tradingview Economic Calendar
- Forex Factory Calendar
- Investing.com Economic Calendar
- TradingEconomics Calendar
Best Practices for News Events
Even for medium and low-impact news that doesn’t trigger official restrictions, consider these risk management approaches:
- Reduce Position Size: If trading around medium-impact news, consider smaller positions
- Widen Stop Losses: Account for increased volatility with appropriate stop placement
- Be Aware of Scheduled Releases: Review the economic calendar at the start of each trading week
- Consider Time-Based Exits: Exit positions well before major announcements if practical
Violation Consequences
Trading during restricted news periods could result in:
- Warning for first-time violations
- Potential account suspension for repeated violations
- Account termination for intentional pattern of news trading
The Rationale Behind Our Policy
This policy is designed to:
- Protect traders from extreme volatility and potential slippage
- Ensure consistent and fair evaluation across all trader accounts
- Promote trading skill rather than high-risk news trading strategies
- Create a sustainable trading environment focused on consistent performance
By respecting these protocols around economic releases, you’ll maintain compliance with our rules while protecting your account from the outsized risks that can accompany major economic announcements.