View news trading rules for other prop firms
Topstep News Trading Rule
The Simple Answer
News trading is allowed at Topstep across all account types and phases. There are no hard blackout windows or restricted time periods around economic events. However, purposefully trading at maximum position size into a major news event is classified as a prohibited trading strategy. Topstep is a futures-only firm.
Below is a breakdown of how the Topstep news trading rules apply across different account types and stages.
| Challenge Type | Evaluation Phase | Funded Phase |
|---|---|---|
| Trading Combine (Evaluation) | Allowed | N/A |
| Express Funded Account | N/A | Allowed |
| Live Funded Account | N/A | Allowed |
Breakdown by Account Type
Trading Combine (Evaluation)
News trading is fully allowed during the evaluation phase. Traders can open, hold, and close positions during any economic release with no restricted windows. Topstep strongly advises caution as trades impacted by economic releases are not eligible for review, exceptions, or credits.
Express Funded Account
News trading is allowed on the Express Funded Account. There are no hard blackout windows around economic events. Purposefully trading at maximum position size into a major news event is listed as a prohibited trading strategy and can result in account review or closure. The 50% consistency rule for payouts means a single oversized news day can delay payout eligibility.
Live Funded Account
News trading is allowed on the Live Funded Account. No hard news restrictions are published. The Daily Loss Limit remains in effect at all times, so a bad fill during a high-impact event can trigger a daily breach. Reckless or undisciplined trading including excessive position sizing during news events may result in a Shoulder Tap from the risk team or forfeiture of live capital.
Warning System for News Rule Violations
Topstep does not publish a progressive warning system specifically for news trading. However, purposefully trading at maximum position size into a major news release is a prohibited trading strategy. If identified, Topstep reserves the right to delete the trading day and all profits, restart the account, or close the account entirely. On the Live Funded Account, the risk team may issue a Shoulder Tap to tighten contract limits or the daily loss limit when reckless news trading is identified.
Final Comments
Topstep permits news trading across all phases without enforcing a specific blackout window. The key distinction from fully permissive firms is that maximum position sizing into major news events is explicitly prohibited. Topstep is also a futures-only firm, meaning all trading is on futures instruments across CME, COMEX, NYMEX, and CBOT exchanges. Forex, stocks, options, and CFDs are not available. For news traders, Topstep offers flexibility but requires responsible position sizing around high-impact events.
👉 Learn more details and get exclusive discounts here: Propvator.com.
FAQ
Is news trading allowed at Topstep?
Yes. News trading is allowed across all phases with no hard blackout windows or restricted time periods. Topstep does not publish a specific news restriction in its official rules.
Are there any restrictions on news trading at Topstep?
There are no time-based restrictions. However, purposefully trading at maximum position size into a major news event is a prohibited trading strategy and can result in account review or closure.
Does the Daily Loss Limit apply during news events?
Yes. The Daily Loss Limit remains in effect at all times on the Trading Combine and Express Funded Account. On Live Funded Accounts, the Daily Loss Limit also applies and positions are automatically flattened if it is hit.
Does Topstep offer forex accounts?
No. Topstep is a futures-only firm. Traders can only trade futures instruments on CME, COMEX, NYMEX, and CBOT exchanges. Forex, stocks, options, and CFDs are not available.
What is the Shoulder Tap on the Live Funded Account?
The Shoulder Tap is a risk management intervention where Topstep’s risk team contacts a trader experiencing a significant drawdown. They may tighten the trader’s contract limits or daily loss limit to help manage risk. Reckless news trading that contributes to a large drawdown may trigger a Shoulder Tap.