Managing daily drawdown while holding through high-impact news or dynamic Asian/London session opens can be tricky with prop rules.
Do you close all positions before major news, or do you adjust your lot sizing based on ATR / Inverse Fair Value Gaps (IFVG)? Curious to see how funded traders structure their risk rules here
To protect your daily drawdown limits during high-volatility news events, many funded traders prefer flatting all positions beforehand to avoid destructive slippage, while others dynamically reduce lot sizing based on the Average True Range (ATR) or structure entries around Inverse Fair Value Gaps (IFVG). Session opens and major releases like CPI or NFP can quickly trigger trailing or static daily loss limits if your risk parameters are not properly adjusted.
When trading with a prop firm, always review their specific terms regarding holding through news releases, as some firms restrict open trades during high-impact data. To see how different evaluations handle these rules, check out our prop firm reviews. How do you manage your lot sizes during volatile session openings? Share your strategy below!
