Counting the minutes a two minute news rule takes out of a scalper's week

[Fairman]

Counting the minutes a two minute news rule takes out of a scalper's week

Many prop firms restrict trading around high impact news. A common version bans opening or closing trades from two minutes before to two minutes after a red-flagged event. I wanted to know how much of a normal week that actually removes.

On a typical week, the main calendars show somewhere around ten to fifteen high impact events across the majors. Each one blocks a four minute window. That's 40 to 60 minutes a week in total, which doesn't sound like much.

The issue is where those minutes fall. Most US releases are at 13:30 London. UK data is often at 07:00. Eurozone flash PMIs are around 09:00. Those are exactly the times many scalpers trade. A four minute block at 13:30 also means you can't close a trade opened at 13:20, so the effective restriction is wider.

In practice I treat each event as a fifteen minute block, from ten minutes before to five minutes after. That gives me time to close any open trade before the restriction starts. Across a typical week that's around three hours of planned downtime.

The other thing to check is which events count. Some firms use their own list, which may include events your calendar marks as medium. And some apply the rule only to funded accounts, not to the challenge. A trade that was fine in the evaluation can be a breach once funded.

I keep the firm's list as a separate calendar from my normal one.

[FXS HongKong Scalper]

The timing point is the key one. Most of those blocked minutes fall in the same few hours of the day, when the main US and European data come out. For a scalper who trades those hours, the effective loss of trading time is much larger than the total suggests, because the best moves often happen just after releases. On the other hand, for traders who focus on the Asian session, the rule removes very little time, since most high impact US and European events fall outside it.

[Fairman]

The rule usually covers stop losses and take profits being hit inside the window too, not just manual entries. A target hit at 13:31 because price spiked on the data can count as a violation at some firms. So the question isn't only when you click. It's also whether any order you have in the market can be triggered by the move. Before every event, I either close trades or pull targets back far enough that the spike can't reach them. Pulling targets back has its own cost, since you might miss the spike, but it's cheaper than losing the account.

[Fairman]

Some firms allow trades opened well before the event to stay open through it, as long as no orders execute during the window. Others say any position open at the time of the event is a problem. These differ a lot, so the wording of the rule matters. I'd copy the exact text from the firm's terms into my notes, rather than relying on a summary from a forum or a review site. Firms do change their rules from time to time, so re-read the text when you start a new account, even with a firm you've used before. Dated notes make it easy to see what changed.

[Fairman]

For algorithmic traders, it's easy to build the news rule into an EA by loading a calendar file and refusing orders inside the window. The calendar needs to match the firm's list, not a general one, and it needs to handle time zones properly. MT5 has a built-in economic calendar you can access through the Calendar functions, which can help, but the firm may count events differently from that source. Testing the filter on a past week, by checking that the EA would have blocked every listed event, takes a few minutes. It's better to find a time zone error in a test than on a funded account.

[Fairman]

Banks' holiday calendars interact with this too. On days when a major release moves to an unusual time, say because of a government closure or a holiday shift, the calendar may update late. If you rely on an automated list, check it the evening before. A release moved by a day can catch an EA that only checks the original date. US government shutdowns have delayed releases before, and those dates moved more than once. Holiday weeks can also shift releases by a day, for example around US Thanksgiving. Checking the calendar the evening before and again in the morning covers most of it.