You're in a winning ES trade, up $600, targeting $800. Then at 8:30 AM Eastern, Non-Farm Payrolls (NFP) releases. Suddenly your position is force-closed by TradeDay's system. You didn't hit your stop. You didn't hit your target. TradeDay's auto-liquidation kicked in because you had a position open during a Tier 1 news event. Your $600 winner just got closed automatically, and you're wondering what just happened and why.
The short answer: TradeDay prohibits holding positions 2 minutes before and 2 minutes after Tier 1 economic news releases. If you have a position open when a Tier 1 event occurs (NFP, FOMC, CPI, GDP, etc.), TradeDay's system automatically closes it at market price. This rule exists to prevent traders from exploiting high-volatility news spikes in the simulated environment. It applies during evaluation and when funded, with no exceptions.
Quick heads-up: This article is based on my real experience with TradeDay and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.
For the absolute latest, check TradeDay´s website or their faq page.
I got auto-liquidated twice in my first month on TradeDay before I fully understood the rule. First time was during NFP—I was flat at 8:28 AM but entered a scalp at 8:29 AM, not realizing NFP was 60 seconds away. Got liquidated at 8:30 AM instantly. Lost $120 on what would have been a winner. Second time was FOMC at 2:00 PM—completely forgot the Fed announcement was that day. Had 2 NQ long from 1:40 PM, up $900, got force-closed at 2:00 PM. After that, I started checking the economic calendar every single morning.
This is your complete guide to TradeDay's news trading rules: what events trigger auto-liquidation, the exact timing windows, how the liquidation process works, strategies to avoid violations, whether you can trade around news, and what happens if you get liquidated during evaluation.
The Basic News Trading Rule
TradeDay's policy in simple terms.
No Positions During Tier 1 News Events
The rule: You cannot have any open positions 2 minutes before or 2 minutes after a Tier 1 economic news release.
Enforcement: Automatic. TradeDay's system force-closes any positions you have open during the restricted window.
Applies to: Both evaluation accounts and funded accounts. No exceptions.
Penalty: Getting auto-liquidated counts as a rule violation if it happens repeatedly during evaluation. One-time accidental liquidation is usually forgiven, but multiple violations can lead to evaluation failure.
What "Tier 1 News Events" Are
Major US economic data releases that move markets significantly:
- Non-Farm Payrolls (NFP) - First Friday of month, 8:30 AM ET
- Consumer Price Index (CPI) - Monthly, 8:30 AM ET
- Federal Open Market Committee (FOMC) Rate Decision - 8 times per year, 2:00 PM ET
- Initial Jobless Claims - Weekly, Thursday 8:30 AM ET
- GDP (Gross Domestic Product) - Quarterly, 8:30 AM ET
- Retail Sales - Monthly, 8:30 AM ET
- Producer Price Index (PPI) - Monthly, 8:30 AM ET
- ISM Manufacturing/Services PMI - Monthly, 10:00 AM ET
- FOMC Meeting Minutes - 2:00 PM ET (different from rate decision)
Full list: TradeDay provides a Tier 1 events calendar. Check it daily.
The Exact Timing Window
Blackout period: 2 minutes before event time through 2 minutes after event time.
Example (NFP at 8:30 AM ET):
- Blackout starts: 8:28 AM ET
- Event time: 8:30 AM ET
- Blackout ends: 8:32 AM ET
- Total blackout: 8:28 - 8:32 AM (4 minutes)
What you cannot do during blackout:
- Have any open positions (long or short)
- Enter new positions
What you can do:
- Be flat (no positions)
- Watch the market
- Prepare for post-news trading
Converting to Your Time Zone
TradeDay uses US Eastern Time for all news event times.
If you're in Central Time: Subtract 1 hour (8:30 AM ET = 7:30 AM CT)
If you're in Mountain Time: Subtract 2 hours (8:30 AM ET = 6:30 AM MT)
If you're in Pacific Time: Subtract 3 hours (8:30 AM ET = 5:30 AM PT)
If you're international: Convert to your local time zone and set alerts
Platform times: Most trading platforms show times in Central Time (CME timezone). ES/NQ charts typically display Central Time. Convert accordingly.
How Auto-Liquidation Works
The technical mechanics of forced position closure.
Pre-Event Warning (Sometimes)
What happens: TradeDay's platform may show a warning message 5-10 minutes before news events: "Tier 1 news event in 10 minutes. Close all positions."
Reliability: Don't count on this warning. It's not always shown. Consider it a courtesy, not a guarantee.
Your responsibility: Check the economic calendar yourself every trading day. Don't rely on platform warnings.
The Liquidation Process
At exactly 2 minutes before the event (e.g., 8:28 AM ET for 8:30 AM NFP):
Step 1: TradeDay's system identifies all accounts with open positions
Step 2: System generates market orders to close all positions
Step 3: Positions are liquidated at current market price (whatever the bid/ask is at that moment)
Step 4: Account shows: "Position auto-liquidated due to news trading restriction"
Step 5: P&L is finalized based on liquidation price
You Cannot Override It
No manual intervention: You cannot cancel the auto-liquidation. Once the system triggers closure, the order is executed.
No "please wait 10 more seconds": Even if you're typing frantically to close your position manually, the system's auto-close will execute first.
No appeals: "I didn't know" or "I was about to close it" doesn't matter. The rule is automatic.
Liquidation Price: Market Order
How you're closed: At market (best available bid or ask at that moment).
In normal conditions: You'll get filled close to the current price (1-2 ticks of slippage typical).
In volatile conditions (if liquidation happens right as news releases): Slippage can be 5-20 ticks because the market is moving fast.
Example:
- You're long ES at 5,900
- Current price at 8:28 AM: 5,910 (you're up +10 points = $500)
- Auto-liquidation triggers at 8:28:00 AM
- Market order sells at 5,909 due to slight slippage
- Your profit: +9 points = $450 (lost $50 to slippage)
Worst case:
- You're long ES at 5,900
- Current price at 8:29:58 AM: 5,910
- Auto-liquidation triggers at 8:30:00 AM (right at news release moment)
- Market gaps down to 5,895 on news
- You get filled at 5,895
- Your result: -5 points = -$250 loss (went from +$500 winner to -$250 loser)
This worst-case scenario is why the rule exists—to prevent traders from intentionally holding through high-volatility news in sim.
After Liquidation: When Can You Trade Again?
Wait until: 2 minutes after the event (e.g., 8:32 AM for 8:30 AM news)
At 8:32 AM: You can enter new positions
Example timeline:
- 8:28 AM: Auto-liquidated (if you had positions)
- 8:28 - 8:32 AM: Cannot trade
- 8:32 AM: Restriction lifts, can trade normally
Recommendation: Wait until 8:33-8:35 AM to let initial volatility settle before entering new positions.
Complete List of Tier 1 Events
The specific news releases that trigger auto-liquidation.
Monthly Economic Data (8:30 AM ET)
Non-Farm Payrolls (NFP): First Friday of every month
Consumer Price Index (CPI): Mid-month (usually second week)
Producer Price Index (PPI): Mid-month
Retail Sales: Mid-month
Personal Income and Spending: End of month
Weekly Reports (8:30 AM ET)
Initial Jobless Claims: Every Thursday
Quarterly Reports (8:30 AM ET)
GDP (Gross Domestic Product): Released ~30 days after quarter end (Q1 in late April, Q2 in late July, etc.)
Federal Reserve Events (2:00 PM ET)
FOMC Rate Decision: 8 times per year (roughly every 6 weeks)
FOMC Meeting Minutes: Released 3 weeks after each FOMC meeting
Other Regular Events (10:00 AM ET)
ISM Manufacturing PMI: First business day of month
ISM Services PMI: Third business day of month
Consumer Confidence: Last Tuesday of month
Where to Find the Calendar
Free economic calendars:
- Investing.com (Economic Calendar section)
- ForexFactory.com (excellent calendar with filters)
- TradingView (Economic Calendar built-in)
- Your broker's platform (most have built-in calendars)
How to use:
- Filter for "United States" events only
- Filter for "High Impact" events (these are typically Tier 1)
- Set alerts on your phone 10-15 minutes before events
Daily routine: Check the calendar every morning before trading. Ask yourself: "Are there any Tier 1 events today, and if so, what time?"
Strategies to Avoid Auto-Liquidation
Practical approaches to trade around news events.
Strategy 1: Exit All Positions 5 Minutes Before Event
The approach: Set alerts for 5 minutes before Tier 1 events. When alert fires, close any open positions.
Example:
- NFP is at 8:30 AM ET
- Set phone alarm for 8:25 AM
- At 8:25 AM: Check if you have positions. If yes, close them manually.
- Be flat by 8:26 AM (2 minutes before blackout starts)
Why 5 minutes: Gives you buffer time to exit cleanly without rushing. Market is usually still relatively calm 5 minutes before news.
Advantage: You control your exit price instead of being force-liquidated at market.
Strategy 2: Don't Enter Positions Within 10 Minutes of Event
The approach: Avoid entering new trades within 10 minutes before Tier 1 events.
Example:
- FOMC is at 2:00 PM ET
- From 1:50 PM onward: Do not enter new positions
- At 2:02 PM: Blackout ends, resume trading if desired
Why this works: Prevents accidentally opening a position too close to the event that you then have to scramble to close.
Trade-off: You miss potential setup opportunities in the 1:50-2:00 PM window. But you avoid violation risk.
Strategy 3: Set Platform Alerts
The approach: Use your trading platform's alert system to remind you of upcoming events.
Setup on TradingView:
- Create alert: "Tier 1 News: NFP 8:30 AM ET"
- Set alert time: 8:20 AM ET (10 minutes before)
- Alert message: "NFP in 10 minutes - close all positions"
Setup on NinjaTrader: Similar alert functionality in Tools → Alerts
Advantage: Automated reminder system. You don't have to remember to check calendar.
Strategy 4: Trade Only Outside News Windows
The approach: Structure your trading day to completely avoid news windows.
Example schedule for ES/NQ trader:
- Session 1: 9:45 AM - 11:30 AM ET (post-open volatility, no major news)
- Avoid: 8:00 AM - 8:45 AM (NFP/CPI window on relevant days)
- Avoid: 2:00 PM - 2:30 PM (FOMC window on relevant days)
- Session 2: 3:00 PM - 4:00 PM (late afternoon if desired)
Advantage: Zero risk of auto-liquidation. You're never trading near events.
Trade-off: Miss some high-volatility opportunities if you like trading news reactions.
Strategy 5: Set Hard Stops at Support/Resistance Before Event
The approach: If you have a position approaching a Tier 1 event and you don't want to manually close it, set a hard stop at a key level that will likely get hit before auto-liquidation.
Example:
- You're long ES at 5,900, current price 5,910
- NFP is at 8:30 AM, it's now 8:20 AM
- You set stop at 5,905 (5 points below current price)
- If market drops, you get stopped at 5,905 (+$250 profit)
- If market stays above 5,905, you get auto-liquidated at 8:28 AM at market price
Why this works: Gives you some downside protection while allowing upside if market runs before liquidation.
Trade-off: You might get stopped at 5,905, then market rallies to 5,920 before liquidation time.
Common News Trading Violations
Mistakes traders make.
Mistake 1: Forgetting Thursday Jobless Claims
What happens: Traders remember NFP (first Friday) and FOMC, but forget Initial Jobless Claims releases every Thursday at 8:30 AM ET.
Result: Auto-liquidated on Thursday morning, confused about why.
Prevention: Set recurring reminder every Thursday: "Jobless Claims 8:30 AM ET today."
Mistake 2: Entering Right Before News
What happens:
- 8:29 AM: Trader enters long 2 ES
- 8:29:30 AM: Realizes NFP is in 30 seconds
- 8:29:45 AM: Tries to exit quickly
- 8:30:00 AM: Auto-liquidation triggers before manual exit executes
Result: Position force-closed, possible loss if market moved against the entry in those 60 seconds.
Prevention: Check calendar before entering any trade. If news is within 10 minutes, don't enter.
Mistake 3: Holding Overnight Into Next Day's News
What happens:
- Tuesday 3:00 PM: Enter long 2 NQ, planning to hold overnight
- Wednesday 8:30 AM: CPI releases
- Wednesday 8:28 AM: Auto-liquidated
Result: Overnight position closed automatically.
Prevention: Check next morning's economic calendar before holding overnight. If there's a Tier 1 event at 8:30 AM, either close before market close (4:10 PM CT) or accept that you'll be liquidated at 8:28 AM.
Mistake 4: Not Accounting for Time Zone
What happens:
- Trader is in Pacific Time
- Thinks NFP is at 8:30 AM Pacific (wrong)
- NFP is actually 5:30 AM Pacific (8:30 AM Eastern)
- Trader enters position at 5:28 AM Pacific, gets liquidated 2 minutes later
Prevention: Always convert event times to your local time zone and set alerts accordingly.
Mistake 5: Trading FOMC Minutes Thinking It's Not Restricted
What happens:
- Trader knows FOMC rate decision is restricted (2:00 PM)
- Doesn't realize FOMC meeting minutes (released 3 weeks later, also at 2:00 PM) are also Tier 1
- Gets liquidated during minutes release
Prevention: Treat any FOMC-related event (rate decision, minutes, speeches by Powell if scheduled as formal events) as Tier 1.
Mistake 6: Multiple Liquidations During Evaluation
What happens:
- Day 3 of evaluation: Auto-liquidated during NFP (accidental, forgot)
- Day 7 of evaluation: Auto-liquidated during CPI (forgot again)
- Day 10: Auto-liquidated during Jobless Claims
Result: TradeDay reviews account, sees pattern of news trading rule violations, denies evaluation even if profit target was met.
Prevention: One accidental liquidation is understandable. Two is pushing it. Three or more during a single evaluation suggests you're not following rules. Check calendar daily.
Does Auto-Liquidation Count as Rule Violation?
How TradeDay treats accidental vs repeated violations.
Single Incident: Usually Forgiven
Scenario: You've traded 12 days, got auto-liquidated once during CPI because you genuinely forgot to check the calendar.
TradeDay's view: Accidents happen. One liquidation over 12 days doesn't indicate intentional rule-breaking.
Evaluation outcome: If you met all five objectives (profit, days, consistency, drawdown, compliance overall), you likely still pass.
Funded account: No penalty. Just make sure it doesn't become a pattern.
Multiple Incidents: Red Flag
Scenario: You get auto-liquidated 3 times during a 10-day evaluation.
TradeDay's view: This suggests either you're not checking the calendar or you're intentionally trying to trade through news despite knowing the rule.
Evaluation outcome: May be denied even if you hit profit target, because repeated rule violations indicate non-compliance.
How to argue: If you can show all three were on different types of events (e.g., NFP, then FOMC, then Jobless Claims—suggesting you're learning different events exist rather than intentionally violating), you might get leniency. But don't count on it.
Intentional Pattern: Instant Failure
Scenario: You get auto-liquidated 8 times over 20 trading days during evaluation, always during high-volatility news events.
TradeDay's view: Clear pattern of trying to exploit news volatility despite rules prohibiting it.
Evaluation outcome: Failure. Account terminated.
Funded account: If you repeatedly violate news trading rules when funded, account can be closed and funds forfeited.
Can You Trade Immediately After News?
What's allowed post-event.
2 Minutes After: Restriction Lifts
At exactly 2 minutes after event time: You're allowed to enter new positions.
Example (NFP at 8:30 AM):
- 8:32:00 AM: You can trade again
- 8:32:05 AM: Enter long ES based on post-NFP reaction
No violation: Trading the post-news reaction (after 2-minute window) is completely allowed.
Volatility Considerations
Market conditions 2-5 minutes after news:
- Extremely volatile
- Wide bid-ask spreads
- Fast price swings (30-50 points in seconds on ES/NQ)
Execution risk: You might get poor fills due to volatility, but that's market conditions, not a TradeDay rule issue.
Recommendation: Wait 3-5 minutes after news for volatility to calm slightly before entering. But if your strategy trades immediate post-news reactions, that's allowed.
Pre-News Setup Trades
Strategy some traders use:
- Identify key support/resistance before news
- Wait until 8:32 AM (post-news)
- Enter based on how price reacted to news
Example:
- Before NFP: ES is at 5,900, key resistance at 5,920
- 8:30 AM NFP releases (you're flat)
- 8:31 AM: ES spikes to 5,930, breaks resistance
- 8:32 AM: You enter long at 5,932 (trading the breakout post-news)
Allowed? Yes, completely legal. You're not holding through the news—you're reacting to it after the blackout ends.
Impact on Your Trading Strategy
How news restrictions affect different trading styles.
Day Traders (Hold 30 Minutes - 4 Hours)
Impact: Moderate. You need to be aware of news times and avoid holding through them, but most of your trades won't be affected.
Adaptation: Check calendar every morning. If trading in the morning, close positions before 8:28 AM on news days. If trading in afternoon, close before 1:58 PM on FOMC days.
Scalpers (Hold 2-10 Minutes)
Impact: Minimal. Scalpers rarely hold positions long enough to encounter news events. You're usually in and out in 5 minutes.
Adaptation: Avoid scalping during the 10 minutes before news events. Otherwise, trade as normal.
Swing Traders (Hold Hours to Days)
Impact: High. If you hold positions for 4-8 hours or overnight, you'll frequently encounter news events.
Adaptation:
- Check next day's calendar before holding overnight
- Set alerts for morning news if holding overnight positions
- Be prepared to be liquidated at 8:28 AM if you're holding through morning news
- Plan your entry/exit timing around news events
News Traders (Specifically Trade News Volatility)
Impact: Complete restriction. You cannot trade news events themselves on TradeDay.
Adaptation: Trade the post-news reaction starting 2 minutes after event. Or, use TradeDay for non-news trading and use a personal brokerage account for news trading.
Frequently Asked Questions
What is TradeDay's news trading rule?
TradeDay prohibits holding any open positions during a 2-minute window before and after Tier 1 economic news releases. Enforcement is automatic — TradeDay's system generates market orders to force-close any open positions at exactly 2 minutes before the scheduled event time, with no manual override possible. The rule applies identically during evaluation and funded accounts with zero exceptions. Trading can resume 2 minutes after the event, at which point all restrictions lift.
Which events trigger TradeDay's auto-liquidation?
Confirmed Tier 1 events include: Non-Farm Payrolls (first Friday monthly, 8:30 AM ET), CPI (monthly, 8:30 AM ET), FOMC rate decisions (8 times yearly, 2:00 PM ET), FOMC meeting minutes (3 weeks after each decision, 2:00 PM ET), Initial Jobless Claims (every Thursday, 8:30 AM ET), GDP (quarterly, 8:30 AM ET), PPI, Retail Sales, Personal Income and Spending, ISM Manufacturing PMI (first business day monthly, 10:00 AM ET), ISM Services PMI, and Consumer Confidence. TradeDay provides a Tier 1 events calendar — check it every morning before trading.
What exactly happens during auto-liquidation?
At exactly 2 minutes before the event, TradeDay's system identifies all accounts with open positions and generates market orders to close them at current market price. You cannot cancel or delay it — even if you're simultaneously entering a manual close order, the system executes first. In normal conditions, slippage is 1-2 ticks. In worst-case scenarios where liquidation triggers right as news releases and the market gaps, slippage can be 5-20 ticks — turning a $500 winning position into a loss. This gap risk is the exact reason the rule exists.
Does auto-liquidation count as a rule violation?
Depends on frequency. A single accidental liquidation over 12+ trading days is generally forgiven if all other objectives are met — TradeDay recognizes that accidents happen. Two incidents push into yellow-flag territory. Three or more during a single evaluation indicates a pattern of non-compliance and can result in evaluation denial even if the profit target was reached. When funded, repeated violations lead to account termination. One incident: usually fine. Three or more: evaluation failure or account closure.
What are the most common mistakes that cause accidental auto-liquidation?
Six recurring patterns: forgetting that Initial Jobless Claims trigger the rule every Thursday at 8:30 AM ET (not just NFP and FOMC), entering a trade within 10 minutes of news and not having time to exit cleanly, holding overnight positions into next morning's news without checking the next day's calendar, calculating event times in the wrong time zone (NFP is 8:30 AM ET, which is 5:30 AM PT — many traders confuse this), treating FOMC rate decisions as restricted but not knowing FOMC meeting minutes (released 3 weeks later at 2:00 PM ET) also trigger the rule, and accumulating multiple violations across different event types during a single evaluation.
Can I manually close my position to avoid the auto-liquidation?
Yes — if you act before 8:28 AM for an 8:30 AM event. The safest approach is closing all positions 5 minutes before the event (8:25 AM for 8:30 AM news), giving yourself a clean exit at market price without rushing. If you wait until 8:29 AM to close manually, the auto-liquidation at 8:28:00 AM may execute before your manual order — leaving you with a market-order exit at whatever price the system catches. The practical rule: never be in a position where you're racing the 8:28 AM cutoff.
Can I trade immediately after the 2-minute post-news buffer ends?
Yes — at exactly T+2:01, positions can be entered normally. Post-news reaction trading is completely permitted and commonly used by TradeDay traders who observe the initial move during the blackout window and enter on the secondary momentum after 8:32 AM. That said, market conditions 2-5 minutes post-release include extremely wide bid-ask spreads, fast price swings of 30-50 points on ES/NQ, and elevated execution risk. Waiting until 8:33-8:35 AM for initial volatility to settle before entering is the safer approach.
Does the rule apply to all futures instruments or just ES and NQ?
All instruments. The Tier 1 restriction covers every CME product you might trade on TradeDay — ES, NQ, YM, RTY, CL, GC, ZB, and all others. The rule applies only to US Tier 1 events, however. If you're trading overnight session and a German GDP or European Central Bank decision releases at 4:00 AM ET, TradeDay's auto-liquidation does not trigger. Only scheduled US Tier 1 events generate the forced closure.
Can a stop loss protect me from being auto-liquidated?
No. A stop loss on your position does not exempt you from the auto-liquidation rule. At 8:28 AM, the system forces your position closed via market order regardless of where your stop is set or whether it's been triggered. Even if your stop is 15 points away and the market is moving in your favor, the forced closure executes at 8:28:00 AM. The stop loss and the news rule are completely independent — the news rule always takes priority.
What strategies prevent accidental auto-liquidations?
Five approaches that eliminate the risk: check the economic calendar every morning before opening the platform and mark any Tier 1 events scheduled that day, set phone alarms for 10-15 minutes before each event, close all positions 5 minutes before events (not 2 minutes — 5 minutes gives you buffer and clean exit control), avoid entering any new position within 10 minutes of a scheduled event, and set recurring weekly alerts specifically for Thursday Jobless Claims since this weekly event is the most commonly forgotten. Treating news windows as mandatory breaks — step away from the screen, wait, re-engage at T+2:01 — is the most reliable system.
What happens if I hold an overnight position and news releases the next morning?
The system auto-liquidates at 8:28 AM regardless of when the position was opened or how the trade was performing. An overnight NQ long entered Tuesday at 3:00 PM gets force-closed Wednesday at 8:28 AM if CPI releases at 8:30 AM Wednesday — with no warning beyond whatever platform notifications TradeDay shows. Prevention: check the next morning's economic calendar before holding overnight. If a Tier 1 event is scheduled at 8:30 AM the next day, either close the position before 4:10 PM CT that evening or accept that it will be liquidated at market price at 8:28 AM the following morning.
How does the news restriction affect different trading styles?
Scalpers (2-10 minute holds) face minimal disruption — just avoid the 10-minute window before events. Day traders need moderate awareness — close morning positions before 8:28 AM on news days and afternoon positions before 1:58 PM on FOMC days. Swing traders holding for hours or overnight face the highest impact — news events become a frequent planning consideration and overnight holds require next-day calendar checks. News traders whose strategy specifically targets news volatility cannot use their approach on TradeDay and should look at Apex Trader Funding, TopOneFutures, Lucid Trading, or FundingTicks, which allow unrestricted news trading.
