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News Trading & Event Filters

High-impact news can destroy a week's profits in seconds. Learn to protect your EA from scheduled chaos.

11 min read
Intermediate

High-Impact Events to Watch

EventAffectsVolatilityTypical MoveFrequency
Non-Farm Payrolls (NFP)USD pairsExtreme50-150 pipsMonthly (1st Friday)
FOMC Rate DecisionUSD pairsExtreme50-200 pips8x per year
ECB Rate DecisionEUR pairsVery High30-100 pips8x per year
CPI (Inflation)Respective currencyHigh30-80 pipsMonthly
GDP ReleaseRespective currencyHigh20-60 pipsQuarterly
Employment DataRespective currencyMedium-High20-50 pipsMonthly

Filter Implementation Strategies

Time-Based Blackout

Stop trading X minutes before and after scheduled news

// News blackout filter
input int MinutesBeforeNews = 30;
input int MinutesAfterNews = 60;

bool IsNewsBlackout() {
  datetime newsTime = GetNextNewsTime();
  datetime now = TimeCurrent();
  
  if (now >= newsTime - MinutesBeforeNews*60 &&
      now <= newsTime + MinutesAfterNews*60) {
    return true;
  }
  return false;
}
Pros:
  • Simple to implement
  • Predictable behavior
Cons:
  • May miss opportunities
  • Requires news calendar

Spread-Based Filter

Pause trading when spread exceeds normal levels

// Spread spike detection
input double MaxSpreadMultiplier = 2.0;
double normalSpread = 1.2; // pips

bool IsSpreadSafe() {
  double currentSpread = MarketInfo(Symbol(), MODE_SPREAD) * Point;
  return (currentSpread <= normalSpread * MaxSpreadMultiplier);
}
Pros:
  • Adapts to real conditions
  • Catches unexpected events
Cons:
  • May be too late for open positions
  • Spread can spike instantly

Volatility Filter

Reduce or pause trading during abnormal volatility

// ATR-based volatility filter
input double MaxATRMultiplier = 1.5;
double normalATR;

bool IsVolatilitySafe() {
  double currentATR = iATR(Symbol(), PERIOD_H1, 14, 0);
  return (currentATR <= normalATR * MaxATRMultiplier);
}
Pros:
  • Catches all volatility, not just scheduled
  • Dynamic adaptation
Cons:
  • Lagging indicator
  • May miss trend starts

Position Management During News

Open positions before news

  • Close all positions X minutes before news
  • Tighten stop losses to break-even or small profit
  • Reduce position size by 50%
  • Set guaranteed stops (if broker offers)
Recommendation: For high-impact news, closing or tightening is safest

Pending orders during news

  • Cancel all pending orders before news
  • Widen entry zones to account for slippage
  • Use stop orders only (not limits)
  • Keep orders but with wider stops
Recommendation: Cancel pendings - slippage makes precise entries unlikely

Trading immediately after news

  • Wait for spread normalization (check every minute)
  • Wait for initial spike to settle (15-30 min)
  • Trade only in direction of news outcome
  • Use reduced position size for first post-news trade
Recommendation: Wait 30-60 minutes for conditions to normalize

News Filter Checklist

News calendar data source identifiedCritical
High-impact events list defined for traded pairsCritical
Time-based blackout implementedCritical
Spread filter as backup protection
Position management rules for open tradesCritical
Pending order handling defined
Post-news re-entry delay configured
Tested during actual news eventsCritical

Common Mistakes

No news filter at all

Why: Stop losses get blown through during news. Spreads widen 10-20x normal.

Fix: Implement at minimum a time-based blackout for high-impact events.

Only filtering the release moment

Why: Volatility often starts before and continues long after the exact time.

Fix: Use 30 min before / 60 min after as minimum blackout window.

Relying on broker stop losses during news

Why: Slippage can be massive. Your 20 pip stop becomes 50+ pips.

Fix: Close positions before news or accept potential slippage in your risk calc.

Using same settings for all news types

Why: NFP is not the same as a minor economic indicator.

Fix: Categorize news by impact. Only filter high/extreme impact events.

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