Published on 13 November 2026.
Volatility at the heart of trading challenges
Trading around high-impact economic releases such as the NFP (Non-Farm Payrolls) or Fed decisions is a major hurdle for candidates in the evaluation phase. In November 2026, managing sudden volatility has become a decisive factor in passing our prop firm challenge validation services, since a single wide-range candle can breach the maximum loss rules within seconds.
Diverging rules from one prop firm to another
Every firm imposes its own restrictions to protect the simulated capital. It is essential to check the specific terms of your program before any macroeconomic release. For example, some firms strictly forbid trading within a 2 to 5 minute window around announcements, on pain of account cancellation.
Examples of policies observed
- FTMO: The firm maintains a clear distinction, generally banning news trading on its Standard accounts while allowing it on its Swing accounts, as detailed in our FTMO review.
- Greater flexibility: Other market players have evolved their models to allow news trading, provided the trader respects the daily and overall drawdown limits.
To better understand these differences, you can read our complete prop firm comparison, which lists the current market conditions.
Risk management and preparation
News trading should not be confused with a quick-profit strategy. Execution speed and widening spreads during these events can make your stops ineffective. To navigate these periods calmly, rigorous risk management is recommended, adapting the size of your positions to the expected volatility rather than to a fixed lot. As experts often point out, discipline and following our risk management guide are the only safeguards against the early failure of a challenge. When in doubt about the strategy to adopt, caution remains the golden rule to preserve your evaluation capital.
This article is for educational purposes only and does not constitute investment advice. Trading involves a risk of capital loss.
