How to Plan Trades with Economic Calendar Events
Economic news releases can cause extreme volatility—and that can be either a blessing or a curse during a prop firm evaluation. Smart traders don’t avoid news—they plan around it. Using an economic calendar strategically can protect your stats and boost your edge.
What Is an Economic Calendar?
An economic calendar lists scheduled news events like:
- Nonfarm Payrolls (NFP)
- FOMC interest rate decisions
- CPI and inflation reports
- GDP releases
Sites like ForexFactory or Investing.com offer color-coded calendars with volatility ratings.
Why Prop Firm Traders Must Monitor Events
Some prop firms like Funded Trading Plus or The Legends Trading may have rules against trading high-impact events, while others allow it—but reward consistency over luck.
Trading through NFP or CPI without a plan can ruin your drawdown buffer in seconds.
Steps to Plan Trades with News Events
- Check the calendar before your session: Avoid surprise volatility.
- Highlight high-impact events: Look for red-flag events that move the market.
- Avoid entries near release times: Stay flat 10–15 minutes before major releases.
- Plan directional bias only after the news: Let volatility settle first.
How to Use News for Strategic Entry
Some traders wait for a breakout during NFP or FOMC, then fade the reaction or enter on pullback. If your firm allows news trading, these moments can offer explosive R:R setups. But you must be selective and manage risk tightly.
Track News Impact in Your Trade Journal
Log news trades and note:
- Event name
- Market reaction
- Was the move justified?
- How did you perform?
This helps you understand whether news trading fits your style or should be avoided.
Looking for a ready-made economic event planning page? Download the News Trade Planner at Prop Firm Press.