The5ers News Trading Mistakes That Can Cost You an Account: 10 Rules Traders Need to Know in 2026

News trading can create some of the fastest price movements in the market. That is exactly why prop firm traders need to understand the rules before trading around events such as NFP, CPI, FOMC decisions, interest-rate announcements, and major employment data.

With The5ers, the answer is not simply “news trading is allowed” or “news trading is prohibited.” The rules depend on the program and, for High Stakes, on when an order is actually executed.

That distinction matters.

A trader can legally hold an existing position through major news on High Stakes but still violate the rules by opening a new position during the restricted window. A pending order is not automatically exempt simply because it was placed earlier.

For traders considering a prop firm account, news rules should therefore be evaluated alongside drawdown, evaluation structure, scaling, payouts, consistency requirements, and long-term account growth.

The5ers News Trading Rules Explained: What Traders Can and Cannot Do

Can you trade during NFP, CPI, and FOMC on The5ers?

For The5ers High Stakes, traders are allowed to hold existing positions through high-impact news. However, opening a new position through a market order or entry order during the restricted period is not permitted.

The current High Stakes rule prohibits order execution from 2 minutes before until 2 minutes after a high-impact news release. The5ers states that it uses Forex Factory for the relevant news events and server time for determining the trading window.

For example, if a high-impact CPI announcement is scheduled for 15:30 server time, a new order should not be executed between 15:28 and 15:32.

This creates an important distinction:

• ●Existing positions can remain open.
• ●A new market position cannot be opened inside the restricted window.
• ●New entry orders can become a problem if they execute during that window.
• ●Stop-loss and take-profit orders on existing positions can still be triggered during the news event.

The rule is therefore about opening new positions, not automatically closing every position before the announcement.

Does The5ers allow news trading on High Stakes, Bootcamp, and Futures?

The answer changes by program.

High Stakes: Existing trades can be held through high-impact news, but new orders cannot be executed during the restricted two-minute-before and two-minute-after window.

Bootcamp: News trading is allowed, but The5ers prohibits news bracketing strategies. The firm defines bracketing as placing both a Buy Stop and Sell Stop around an anticipated news move.

Futures: The5ers currently states that news trading is allowed without specific restrictions around economic releases, subject to the program's other trading and risk rules.

This difference is important when choosing an account. A trader whose strategy depends heavily on entering immediately after an economic release may need to evaluate the program's execution rules before deciding which evaluation structure fits.

Related Reads: Common The5ers Rule Violations in 2026: How to Avoid Losing Your Prop Trading Account

The Most Common The5ers News Trading Mistakes Traders Make

1. Assuming “news trading allowed” means every news strategy is allowed

One of the easiest mistakes is treating a general statement such as “news trading is allowed” as permission to use any strategy around an economic release.

That is not how the rules work.

High Stakes allows existing positions to remain open through news, but it restricts new order execution around high-impact releases.

Bootcamp allows news trading but excludes bracketing strategies.

Futures currently allows news trading, while other account rules still apply.

The practical lesson is simple: read the rules for the specific program you are buying rather than relying on a general prop-firm news policy.

2. Forgetting that pending orders are judged when they execute

A common misunderstanding is that a pending order is safe because it was placed before the restricted window.

For High Stakes, that is not the case.

The5ers specifically states that the restriction applies to the exact moment an order is triggered and executed. Therefore, a Buy Stop, Sell Stop, Buy Limit, or Sell Limit that executes inside the restricted news window can be treated as a news-trading violation.

This matters particularly for traders who leave pending orders near major economic releases.

If a trader knows that CPI is scheduled for 15:30 server time, simply placing an order at 15:20 does not remove the execution risk at 15:29 or 15:31.

The relevant question is not:

“When did I place the order?”

It is:

“When was the new position actually opened?”

3. Treating holding through news as risk-free

Being allowed to hold a trade through news does not make the position safe.

News can produce rapid price changes, wider spreads, slippage, gaps, and unexpected stop-loss execution. A position that looks comfortably profitable before an announcement can move sharply against the trader seconds later.

This is especially important in a prop firm account because the trader is operating inside predefined drawdown limits.

A permitted trade can still become a losing trade.

The5ers' news rule and its risk rules therefore need to be considered together.

High Stakes News Trading, Drawdown, and Position Risk

4. Underestimating how news volatility affects the 5% daily and 10% maximum loss limits

High Stakes currently has a 5% daily drawdown limit and a 10% maximum loss limit.

The daily limit is calculated using the previous day's closing balance or equity, whichever is higher, with the calculation resetting at 00:00 server time.

For example, on a $100,000 account, if the relevant daily reference is $110,000, the 5% daily loss allowance is $5,500. Falling below the resulting equity threshold can terminate the account.

This becomes particularly relevant during major releases.

A trader might enter a news event with a position that appears appropriately sized but then experience a rapid adverse move. If several positions are exposed to the same economic event, their combined movement can consume a large portion of the daily drawdown allowance very quickly.

News trading should therefore be considered as part of the overall account risk budget, not as a separate activity.

5. Using maximum leverage simply because it is available

High Stakes currently lists leverage of up to 1:100 for Forex, with different leverage limits applying to other asset classes.

Leverage determines how much market exposure can be controlled with available margin. It does not determine how much risk a trader should take.

A trader can use relatively high leverage while keeping actual trade risk small through position sizing and stop placement. Conversely, excessive position size can make a normal market movement dangerous.

Before a major release, traders should consider:

• ●Position size
• ●Stop-loss distance
• ●Total open risk
• ●Correlated positions
• ●Available daily drawdown
• ●Volatility around the specific instrument
• ●Whether existing positions are already exposed to the same event

The objective is not to avoid every volatile market. It is to ensure that one announcement does not create an account-level risk problem.

6. Moving or removing a stop loss because “the market will come back”

News events can make this mistake particularly expensive.

A trader enters before CPI, sees price move sharply against the position, and removes the stop because the original setup may still work after volatility settles.

The problem is that a prop firm account has a finite loss limit.

If the original risk was acceptable but the stop is moved substantially farther away, the trade can become incompatible with the account's drawdown structure.

A better framework is to decide the maximum acceptable loss before entering the trade.

That allows the trader to evaluate whether the position belongs in the account at all.

Pending Orders, Bracketing, and Other News Trading Rules to Understand

7. Using a Buy Stop and Sell Stop to capture whichever way news moves

News bracketing attempts to position orders on both sides of the market before a major release.

If price moves sharply upward, the Buy Stop can trigger. If it moves downward, the Sell Stop can trigger.

The5ers specifically restricts this strategy in programs where its news policy prohibits bracketing, including Bootcamp.

This is different from holding an existing trade through an announcement.

The distinction is important because traders sometimes group all news strategies together. They are not necessarily treated the same way.

A trader should identify whether the strategy involves:

• ●Holding an existing position
• ●Opening a market order
• ●Using a pending entry
• ●Placing simultaneous opposing pending orders
• ●Trading immediately after the announcement

Each can interact differently with the program rules.

8. Ignoring server time when planning around an economic release

Another avoidable mistake is using a local clock or a calendar's displayed timezone without checking the trading platform's server time.

The High Stakes news restriction is based on the relevant news schedule and server time.

That means a trader should convert the event time before placing or modifying an entry strategy.

A useful pre-news routine is:

1. ●Check the event and impact level.
2. ●Confirm the currency or index affected.
3. ●Check the platform's server time.
4. ●Calculate the restricted window.
5. ●Review open positions.
6. ●Cancel or modify entries that could execute inside the restricted period.
7. ●Recalculate total account exposure.

This is a small operational habit, but it can prevent a rule misunderstanding from becoming an account problem.

Related Read: Prop Firm Rule Changes and Grandfathering: How Existing vs New Accounts Are Affected

The5ers Program Differences: High Stakes vs Bootcamp vs Futures for News Traders

9. Which The5ers program fits different news-trading styles?

The right program depends partly on how the trader actually trades news.

High Stakes provides a two-step evaluation structure with unlimited evaluation time, a 5% daily loss limit, a 10% maximum loss limit, and the ability to hold positions through news. Its specific restriction is on new order execution around high-impact releases.

For traders who prefer a structured evaluation and want time to develop a repeatable strategy rather than trade against a countdown, the unlimited evaluation period is an important feature. There is still a 30-day inactivity limit, so “unlimited time” does not mean an account can remain unused indefinitely.

Bootcamp also allows news trading but prohibits bracketing strategies. It uses a multi-stage evaluation process and has its own funded-stage risk framework.

The5ers Futures takes a different approach. Its current rules allow trading during news, while the program uses futures-specific requirements such as a 40% consistency rule, contract limits, and its own drawdown framework.

For a trader deciding between programs, the news rule should therefore be evaluated alongside the broader trading model.

10. How do drawdown, consistency, scaling, and payouts change the news-trading decision?

News rules are only one part of the buying decision.

A trader should also ask:

How does the account grow after passing?

High Stakes currently starts funded traders at an 80% profit split, with the possibility of scaling that split to 100%. The5ers states that High Stakes traders need a 10% target and three profitable days to scale.

A profitable day is defined using a minimum closed profit of 0.5% of the initial balance under the program's stated calculation.

The program also provides a funded withdrawal pathway, with eligible High Stakes traders able to request payouts every 14 days. Current published rules list payout caps for certain account sizes, so traders should check the specific account's terms rather than assuming all sizes have identical payout conditions.

The broader point is that news trading should fit into the trader's account-growth framework.

If the strategy depends on taking oversized positions during NFP or CPI simply to hit an evaluation target quickly, the strategy may be poorly matched to the account's drawdown structure.

If news is simply one controlled component of a broader system, the same market events can be incorporated without making them the centre of the trading plan.

Related Read: The5ers Programs in 2026: Bootcamp, High Stakes, Hyper Growth, Pro Growth, Instant Funding and Futures Explained

How to Build a Better The5ers News Trading Plan

What should traders check before trading a high-impact economic release?

A practical High Stakes news checklist can be kept very simple:

Before the event

• ●Identify whether the announcement is high impact.
• ●Check the affected currency or index.
• ●Confirm server time.
• ●Calculate the restricted two-minute window.
• ●Review every open position.
• ●Review pending entry orders.
• ●Calculate total exposure.
• ●Check remaining daily drawdown.

During the event

• ●Do not open a new position during the restricted High Stakes window.
• ●Do not assume a pending order is exempt.
• ●Avoid making emotional size increases because of sudden volatility.
• ●Monitor existing positions according to the original trading plan.

After the event

• ●Wait until the restricted window has ended before considering a new High Stakes entry.
• ●Reassess spread and volatility.
• ●Recalculate risk before entering.
• ●Avoid chasing the initial price move simply because the market moved quickly.

This approach turns news trading from an impulsive event into a predefined part of the trading system.

How can structured news trading support long-term account development?

A prop firm evaluation is not only about reaching a profit target.

The more useful question is whether the trading method can continue operating after the evaluation.

High Stakes provides a clear example of why this matters. The evaluation has no fixed time limit, but the account still has inactivity rules. Once funded, traders can access a payout cycle, and the published scaling framework provides a pathway toward larger account levels.

The5ers currently states that High Stakes accounts can scale toward $500,000. Its published scaling information also includes monthly fixed-payout milestones at higher account levels.

That creates a different way to think about news trading.

Instead of asking:

“How much can I make from the next CPI release?”

a longer-term trader can ask:

“Does my news exposure fit the risk limits I need to preserve this account for the next stage?”

That shift can matter for trader psychology as well. A predefined risk framework reduces the need to make decisions in the middle of extreme volatility and can help separate a valid trading setup from the emotional urge to recover a loss quickly.

Choosing a Prop Firm When News Trading Matters

If news trading is an important part of your strategy, do not compare firms on the news policy alone.

Use a wider checklist:

For traders specifically considering The5ers, High Stakes deserves to be evaluated as a complete account-growth structure rather than simply as a “news trading prop firm.”

Its combination of a two-step evaluation, unlimited evaluation time, defined drawdown limits, funded payout cycles, profit-share progression, and scaling framework makes the relationship between risk management and long-term account development particularly important.

The trade-off is that High Stakes does not give unrestricted new-position execution around high-impact news. Traders whose strategy depends on entering inside that narrow window need to account for this before choosing the program.

That is exactly why reading the rules before purchasing matters.

For more prop firm comparisons, scaling guides, and trader education, explore Prop Firms Insider.