Trading News Events on FTMO: Understanding the Real Restrictions

I’ve been trading with FTMO for several years now, and one of the most misunderstood aspects of their trading challenge is how they handle news event trading. Many traders ask me whether they can scalp high-impact economic releases like NFP or central bank decisions, and the honest answer isn’t as simple as yes or no. FTMO has specific blackout windows and profit rules that directly impact how you can approach volatility spikes around major news events.

When I first started with FTMO, I thought I could just trade around these events like I did with my own account. I quickly learned that prop firms have very different risk management philosophies than retail brokers, and news trading sits right at the intersection of where they draw hard lines.

FTMO Blackout Windows: When You Simply Cannot Trade

FTMO enforces what they call blackout periods around major economic data releases. During these windows, which typically run from 30 minutes before to 30 minutes after the release time, you are completely restricted from opening new positions. This rule applies to any news event marked as high-impact on FTMO’s calendar.

The blackout window restriction is non-negotiable on their platform. I’ve tested this myself, and any attempt to open a trade during these periods results in an instant rejection at the order entry level. It’s not a risk decision you can choose to take, it’s a hard technical restriction built into their trading system.

What I find interesting is that FTMO updates their news calendar regularly, so you need to check it actively. I make it a habit to review their economic calendar every Sunday evening to map out my week. If you’re trading a five-day challenge, knowing exactly when these blackout windows occur can mean the difference between a passing week and running into unexpected restrictions.

Understanding FTMO’s Daily Loss Limit and News Event Impact

Beyond blackout windows, FTMO has a daily loss limit that directly affects how you can use news events strategically. On most accounts, this limit sits between 5 percent to 10 percent of your initial account balance depending on your account size and challenge level. News events can spike volatility so dramatically that even a well-planned trade can hit slippage that breaks your daily limit in seconds.

I’ve experienced brutal spreads during high-impact news releases. On NFP Friday, I’ve seen the EUR/USD spread widen from 0.8 pips to 5 plus pips in milliseconds. If you’re short positioning right before the release thinking you’ll catch the move, you’re competing against major institutional algorithms and banks who have hardware sitting in data centers. Your retail connection simply won’t match their speed.

The daily loss limit becomes a critical factor when you’re considering news event trading. One bad entry during high volatility can consume half of your allowed daily drawdown instantly. I’ve learned to be extremely cautious about holding positions into news releases because the risk-to-reward ratio often becomes asymmetrical against retail traders.

FTMO’s Profit Rules and News Trading Viability

FTMO requires traders to hit specific profit targets to pass their challenges. On most challenges, you need to generate a 10 percent profit from your starting balance. This profit target resets based on your account’s peak balance, which means you’re always chasing against a moving target. News event trading sounds attractive because of the potential for quick 100-150 pip moves, but the execution reality is much different.

When I’ve tried to build my profit target through news trading alone, I’ve found it’s incredibly inconsistent. Some releases go my direction and I capture 60 pips in two minutes, but others reverse violently and I’m stopped out with a loss. Over a five-day challenge period, I’ve realized that grinding out smaller, consistent trades between news events is statistically more reliable than trying to hit the profit target through event-based scalping.

The psychological factor is worth mentioning too. Waiting for news releases and trying to time them perfectly creates pressure that clouds your decision-making. I trade much better when I’m in a neutral mindset executing my regular trading plan rather than tunnel-visioned on the economic calendar.

My Practical Approach to News Events on FTMO

Over my trading tenure with FTMO, I’ve developed a strategy that respects their blackout windows while still allowing me to profit around volatility. I close all positions 45 minutes before high-impact news releases. This keeps me completely out of the volatility spike zone and eliminates slippage risk entirely.

After the news release and once volatility normalizes, typically 30 to 45 minutes post-release, I re-enter the market based on supply and demand zone analysis. By that point, the fake-out moves have often occurred, and the true directional bias becomes clearer. This approach lets me catch secondary moves rather than fighting the noise of the initial spike.

I also use FTMO’s news calendar religiously to know my account’s vulnerable times. If I’m within 2-3 percent of my daily loss limit and there’s a high-impact news event scheduled, I reduce my position sizing or close trades completely. It’s not worth the risk of getting whipsawed by unexpected volatility when I’m close to my drawdown limit.

Comparing News Trading Rules Across Prop Firms

FTMO isn’t the only firm with restrictions on news trading. Other firms like FundingPips have similar blackout periods, though their specific windows and profit requirements differ. What I’ve noticed across the industry is that all regulated prop firms implement some form of news restriction because of the liquidity and risk management issues it creates.

If you’re comparing multiple prop firm options, understanding each firm’s specific news policy is essential. Some firms are slightly more lenient with their blackout windows, while others extend them further. These differences can significantly impact your trading style and your ability to pass their challenges consistently.

For traders interested in exploring multiple funding options while managing their cashback, TradeBack Hub offers cashback on various prop firm accounts, which can help offset the costs of challenge attempts across different platforms.

Why FTMO Maintains These Restrictions

From a risk management perspective, I understand why FTMO enforces these blackout windows. During news releases, liquidity in the market becomes severely fragmented. Large institutional orders can’t execute at reasonable slippage levels, and retail traders end up bearing the cost of that friction. If FTMO allowed unrestricted news trading, their trader accounts would be exposed to gap risks that could exceed their risk management protocols.

The firms also protect themselves against the scenario where a trader makes an oversized bet on a single news event and suffers a catastrophic loss that eats through their risk allocation. By blocking positions during these periods, FTMO ensures that losses occur in a more controlled and predictable way across their trader population.

Adjusting Your Trading Plan for FTMO’s News Rules

If you’re new to FTMO, your biggest adjustment will be accepting that you cannot trade news events the way you might trade your own account. This is a mental shift that takes discipline. I had to completely reprogram how I viewed the economic calendar. Instead of seeing news releases as trading opportunities, I now see them as times to protect my account and stay out of the volatility.

Building your trading plan around FTMO’s rules rather than against them is the key to consistent challenge passes. I’ve noticed that my success rate dramatically improved once I stopped fighting their restrictions and instead built my strategy within their constraints.

The Bottom Line on FTMO News Trading

Trading news events on FTMO is technically possible in the sense that you can have trades open before a blackout window closes them, but you cannot initiate new trades during blackout periods, and your daily loss limit creates real consequences if your news positions go against you. The practical reality is that news trading is risky on FTMO accounts because of slippage, spread widening, and the pressure to hit profit targets within a limited timeframe.

My experience has shown me that the most consistent way to pass FTMO challenges is to avoid news events entirely, build smaller wins through technical trading on liquid pairs, and let your profit target accumulate naturally. The traders I know who consistently pass FTMO challenges are the ones who respect the blackout windows and treat news events as non-trading days rather than opportunities.