TradeDay News Trading Rules: Auto-Liquidation Explained

Written by Paul

Published on

January 12, 2026

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.

For scalping rules, see the scalping policy guide.

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 if news gets delayed or rescheduled?

TradeDay's system follows the official scheduled time, even if the actual news release is delayed. If NFP is scheduled for 8:30 AM but the Bureau of Labor Statistics delays it to 8:45 AM, the blackout still occurs at 8:28-8:32 AM. Then a second blackout occurs at 8:43-8:47 AM for the actual release.

Can I manually close my position at 8:29 AM to avoid liquidation?

Yes. If you close your position manually before 8:28 AM, you won't be auto-liquidated. But if you wait until 8:29 AM, the auto-liquidation may execute before your manual close order.

What if I enter a position at 8:27:59 AM (1 second before blackout)?

The system will likely let your entry execute but then immediately liquidate you at 8:28:00 AM when blackout starts. Bad idea—you'll get whipsawed.

Does the rule apply to all instruments or just ES/NQ?

All instruments. The news events affect all US futures markets (ES, NQ, YM, RTY, CL, GC, etc.). If you're trading any CME product, the rule applies.

What if I'm trading during non-US session (overnight)?

US news events are the only ones TradeDay restricts. If you're trading overnight session and, say, German GDP releases at 4:00 AM Eastern, there's no auto-liquidation for that. Only US Tier 1 events trigger the rule.

Can I hold through news if I set a stop loss?

No. Even with a stop loss set, you'll be auto-liquidated at 8:28 AM (2 minutes before news). Your stop loss won't save you from the forced closure.

What if I'm on vacation and forgot about news?

Not an excuse. Your responsibility to check the calendar. If you're not actively monitoring, don't leave positions open.

Are there any exceptions to the 2-minute rule?

No exceptions. The rule applies to everyone: evaluation traders, funded traders, small accounts, large accounts. No one can hold through Tier 1 news events.

What's the penalty if I get liquidated multiple times when funded?

First few times: Warning. Repeated pattern: Funded account may be closed. TradeDay can terminate funded accounts for repeated rule violations.

Bottom Line: Check the Calendar Daily

TradeDay's news trading auto-liquidation rule is non-negotiable. You cannot hold positions 2 minutes before or after Tier 1 US economic events. The system force-closes your positions automatically at market price, and you have no control over the exit. This rule applies during evaluation and when funded.

To avoid violations:

Check economic calendar every morning before trading
Set alerts on your phone 10 minutes before major events
Close all positions 5 minutes before news events
Never enter positions within 10 minutes of a Tier 1 event
Wait until 2 minutes after event to resume trading

One accidental liquidation during evaluation: Usually forgiven if you otherwise meet all objectives.

Multiple liquidations: Red flag that can lead to evaluation denial or funded account termination.

Best practice: Treat news events as mandatory breaks in your trading day. Be flat, step away, wait for volatility to settle post-news, then resume.

For complete TradeDay rules, check the full TradeDay review.

Check the calendar. Avoid the news. Stay compliant.