TX3 Funding Futures prohibits certain news trading activities to maintain a fair and stable trading environment. Below are the details regarding the prohibited news trading activities and how traders are expected to manage trades around news events.
Prohibited News Trading Activities
During news releases, the following actions are strictly prohibited:
Exploiting News Bursts: Using strategies that aim to exploit sudden price movements during news releases, such as straddles or strangles, is not allowed.
Consistent News-Based Strategy: Relying on news trades as a consistent strategy to generate profits is also prohibited, as this does not align with the fair trading environment that TX3 seeks to maintain. These restrictions apply to all major news events to prevent unrealistic trading advantages and maintain equity among all traders.
Standard Trading Protocols
To maintain trading integrity during news releases, traders are required to:
Stick to Regular Strategies: Continue using their regular trading systems and avoid creating special news-specific strategies.
Initiate Trades Based on Standard Entry Rules: Only initiate new trades based on regular trading rules, not in response to anticipated news movement.
Avoid Open Positions: Avoid having any open positions or pending orders starting 2 minutes before and ending 2 minutes after any data release to reduce exposure to unpredictable market movements.
Tier 1 Data Special Rules
Certain Tier 1 news events require additional precautions due to the extreme volatility they can cause.
Close Positions Early: All open positions must be closed at least 3 minutes before a Tier 1 news release. Traders should refrain from entering new positions until 3 minutes after the release.
Example: For a news release scheduled at 8:30 AM, all positions must be closed by 8:27 AM and can be reopened after 8:33 AM.
Restricted Accounts: Beginner and Pro Simulated Funded accounts may not trade during Tier 1 news events, as the simulated environment cannot fully replicate the market conditions seen during high-impact releases.
Tier 1 News Events Include
All Traders: Events such as FOMC Meetings, FOMC Minutes, Employment Reports, and CPI are classified as Tier 1 and have strict trading restrictions.
Energy Traders: EIA Reports are also considered Tier 1 for energy traders.
Agricultural Traders: Important Agricultural Reports fall under Tier 1 events for agricultural traders.
Trading During Other News Releases
While there are restrictions on Tier 1 news events, traders are allowed to trade through other, less impactful releases if it aligns with their trading strategy. However, TX3 Funding Futures is not responsible for any broker-related disruptions or issues that may occur during such times.
Commitment to Fair Trading
TX3 Funding Futures news trading policy ensures a fair and stable trading environment for all traders. News trading is not simulated 1:1 with live market conditions, which is why these restrictions are necessary to maintain fairness. Your adherence to these guidelines helps us create a secure and equitable trading experience for all participants.