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Advanced News Trading: Going Beyond The Basics |
Written by Renan Filho, Technology & AI specialist. Expiry dates and activation fees are always visible.
Quick Answer: Advanced news trading requires precision. You must anticipate volatility, not react. Most retail traders fail because they chase price. Use limit orders, trade the second spike, and get funded by a prop firm that allows news. Here's the real edge.
Key Facts for US Traders (2026)
| Market | Detail | Source |
|---|---|---|
| US indices | S&P 500, NASDAQ, Dow Jones | NYSE / NASDAQ |
| Regulator | CFTC (futures) / SEC (securities) | Official |
| Prop firm model | Funded evaluations with profit split 70-95% | Vendor terms |
| Verification | Updated regularly | PropFirmDiscountApp |
| Best deal today | Code DISCOUNTAPP — up to 90% off | Updated regularly |
Why standard news trading fails
Most traders wait for the news and then buy or sell. By then, the market has moved 20 points. Slippage kills your stop. You need to enter before the release or use pending orders. Retail brokers often widen spreads. Prop firms like FTMO have strict drawdown rules. You cannot afford a 5% loss on a single news trade. Learn to fade the initial move.
Tools and timing for US traders
Use these tips: 1) Set alerts for key releases like NFP and CPI. 2) Trade only during NY session (GMT-5). 3) Use a fast data feed like Bloomberg or Reuters. 4) Avoid trading the first 5 seconds. 5) Use limit orders 10 pips above resistance. 6) Check SEC filings for stock news. Speed matters more than analysis.
Execution strategies that work
Here is a comparison of prop firms for news trading. Choose one that fits your style. FTMO is the most reliable. Apex offers cheap evaluations but strict rules. Topstep is great for futures. FundedNext has a smooth process. True Forex Funds is worth it for forex. The5ers ban news trading, avoid them. E8 Markets gives high profit split but costs more.
Advanced techniques: straddles and reversals
After a big news release, price often overshoots. Place a straddle 20 pips above and below pre-news range. Wait for the initial spike to fade. Enter in the opposite direction. Use a tight stop. This works best on NFP. Prop firms with low drawdown limits require careful sizing. Never risk more than 1% per trade.
Why you need a funded account for news
Trading news with your own money is risky. One bad trade can wipe months of gains. Prop firms let you trade larger capital with defined risk. FTMO allows 10% daily drawdown. That gives room. Apex has 6% daily. Topstep 4%. FundedNext 5%. True Forex Funds 8%. The5ers ban news. E8 Markets 5%. Pick a firm with higher daily drawdown for news.
Quick Comparison
| Firm | News Trading | Max Daily Drawdown | Profit Split | Evaluation Cost (USD) |
|---|---|---|---|---|
| FTMO | Allowed | 10% | 80% | 155 |
| Apex | Allowed with restrictions | 6% | 80% | 75 |
| Topstep | Allowed | 4% | 80% | 49 |
| FundedNext | Allowed | 5% | 80% | 109 |
| True Forex Funds | Allowed | 8% | 80% | 99 |
| The5ers | Not allowed | 6% | 80% | 85 |
| E8 Markets | Allowed | 5% | 90% | 125 |
Frequently Asked Questions
Can I trade news with FTMO?
Yes, FTMO allows news trading. Just follow their drawdown rules.
What is the best prop firm for news trading?
FTMO is the best because of high daily drawdown and clear news policy.
How much can I lose on a news trade?
Limit to 1% of your account. Prop firms will cut you off if you hit daily loss limits.
Do prop firms allow scalping during news?
Most do, but check their rules. The5ers bans all news trading.
What is the fastest way to pass an evaluation for news trading?
Trade small during quiet times and nail one big news move. Use limit orders.
Conclusion
Ready to trade news with a solid firm? Use code NEWS20 at FTMO for 20% off evaluation. Original $155, now $124. Click here: https://ftmo.com/?ref=news20. Start your funded account today.
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Risk warning: Trading involves substantial risk of loss and is not suitable for every investor. Past performance is not indicative of future results. Prop firm evaluations are simulations, not regulated brokerage accounts.