TPThe Trading Playbook

Updated 2026-03-08

Funded Trading Plus News Trading Policy Rule Explained

Funded Trading Plus
Quick Answer

Funded Trading Plus allows news trading during all high-impact economic events with no explicit restrictions.

Unlike many prop firms, Funded Trading Plus does not impose specific trading restrictions during major news releases like NFP, FOMC, or inflation data. Traders can maintain positions and execute trades during any economic announcements. However, standard risk management rules like the 5% daily loss limit and 10% total loss limit still apply during volatile news periods.

Key Rule Details

Policy
Allowed
Detail
No explicit news trading restrictions published —
Applies To
All high-impact news (NFP, FOMC, CPI)
Enforcement
Automated — breach triggers account review
Phases
Challenge and Funded

Calculation Example

Account Size: $100,000News Trading Policy: No restriction
Account Size$100,000
News Trading Policy LimitNo restriction
Scenario: Closed P&LNFP release at 8:30 AM ET
Scenario: Floating P&LTrading permitted
Total ExposureNo action required
Remaining BufferFull freedom
Limit used:0%

Common Mistakes

Assuming News Restrictions Exist
Many traders avoid news events thinking Funded Trading Plus prohibits them, missing profitable opportunities. This misconception comes from experience with other prop firms that ban news trading. Since Funded Trading Plus explicitly allows news trading, traders can capitalize on volatility from events like NFP or FOMC meetings without rule violations.
Ignoring Increased Volatility Risk
Traders use normal position sizes during news events, forgetting that volatility can trigger the 5% daily loss limit faster. On a $100,000 account, hitting the $5,000 daily loss during a volatile NFP release is easier with standard lot sizes. The lack of news restrictions doesn't eliminate the underlying risk management rules that still apply.
Overconfidence During News Events
Since news trading is allowed, some traders increase position sizes or abandon stop losses during major announcements. This leads to rapid drawdowns that can breach the 10% maximum total loss rule. A trader on a $50,000 account could lose the entire $5,000 maximum in minutes during unexpected news volatility.
Misunderstanding Rule Interactions
Traders focus only on news trading permission and forget how other rules interact during volatile periods. Rapid price movements during news can cause floating losses to temporarily breach daily limits even if positions recover. The 5% daily loss calculation includes unrealized P&L, so a temporary spike during news can still trigger account violations.

Protection Strategies

Set Personal News Trading Limits
Create your own buffer by limiting news exposure to 2-3% of account size instead of relying on the firm's 5% daily loss limit. On a $100,000 account, risk only $2,000-$3,000 during major news events. This provides cushion for unexpected volatility while still capitalizing on the allowed news trading opportunities.
Reduce Position Sizes During News
Cut normal position sizes by 30-50% during high-impact events to account for increased volatility. If you normally risk 1% per trade, reduce to 0.5% during NFP or FOMC announcements. This allows you to trade news events while protecting against rapid movements that could breach the 5% daily loss threshold.
Use Real-Time Loss Monitoring
Set alerts at 3% daily loss and 7% total loss to provide early warnings before hitting Funded Trading Plus limits. Monitor both realized and unrealized P&L during news events since floating losses count toward daily calculations. This gives time to close positions before reaching the firm's 5% daily or 10% total loss limits.
Avoid Compounding News Events
Trade only single news events rather than holding through multiple announcements in the same day or week. If you trade the morning CPI release, avoid the afternoon FOMC decision to prevent cumulative losses. This strategy prevents multiple volatile events from compounding losses toward the daily or total loss limits.

Related Rules

Maximum Daily Loss
5%
Maximum Total Loss
10%
Profit Target (Phase 1)
10%
Profit Target (Phase 2)
5%

Funded Trading Plus Comparisons

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on Funded Trading Plus's official website before purchasing a challenge. Updated 2026-03-08.