Why does EagleTrader reiterate that trading is prohibited from 2 minutes before and after important data?

On March 12, the United States released its CPI data for February.

　　The US unseasonally adjusted CPI annual rate in February was 2.8%, the lowest since November last year, lower than market expectations of 2.9%.

　　The US seasonally adjusted CPI monthly rate in February was 0.2%, the lowest since October last year, with an expected value of 0.3% and the previous value of 0.5%.

After the data was released, the three major U.S. stock index futures expanded their gains, and spot gold rose and fell.

　　We noticed that within 2 minutes of the release of this important data, there were traders who had signed contracts still placing orders. Because when the US CPI data was released, liquidity became worse and the spread widened, this profit-sharing account was traded within 2 minutes of the data appearing, which had triggered risk control.

　　We deeply regret this and hope to explain the situation to all candidates and contracted traders through this statement, clarify the rules, and reiterate the important principles of profit sharing assessment.

　　The following is a case that triggers the risk control candidate: the candidate held a short order of EURUSD before the release of CPI data and set a stop loss of 1.09320. The market fluctuated violently at the moment after the release of the data, and instantly hit his stop loss, causing the candidate to regretfully trigger the risk control to be eliminated.

　　In addition, we would like to reiterate that for contracted traders, risk control of data is very important 2 minutes before and after.
Even if the transaction is profitable in the first and second minutes, the candidate will trigger the elimination risk control. Because we need to train candidates to adhere to risk control through simulation disks, rather than pursuing risk.

　　EagleTrader has always been committed to providing candidates with a fair and transparent assessment environment. We will continue to optimize the risk control mechanism, strengthen the publicity of rules, and ensure that all candidates participate in the assessment on the premise of clarifying the rules. At the same time, we will also provide more training and support to candidates to help them improve their trading skills and compliance awareness.

　　So, why do contracted traders need to prohibit orders within 2 minutes before and after the release of important data?

　　1. Severe market fluctuations:

　　Before and after the release of important data (non-agricultural reports, interest rate resolutions, etc.), the market volatility is extremely high and there are large fluctuations in a very short period of time. At this time, the transaction is likely to encounter slippage, that is,It is a deviation between the actual transaction price and the expected price, and there may be a situation where the spread expands, which will undoubtedly increase trading risks and thus affect the trader’s returns.

　　In addition, during the period before and after the data is released, the market transaction volume will increase sharply, which will cause congestion in the order book. Once this happens, the trader’s orders may not be traded in time, and may even be triggered to stop loss or take profit due to rapid changes in prices, causing losses to the trader.

　　2. Risk control demand

　　EagleTrader’s main goal is to reduce the risks brought to traders and companies themselves due to extreme market fluctuations. Banning trading 2 minutes before and after the data is released can effectively prevent traders from causing major losses to their accounts due to excessive speculation.

　　3. Ensure fairness

　　By restricting trading, some traders should avoid using information obtained in advance or high-frequency trading strategies to gain an advantage, thereby maintaining market fairness.

　　4. Follow regulatory requirements

　　The relevant rules of EagleTrader may be in line with industry norms, such as avoiding insider trading and conducting compliant risk management to ensure the legality and normativeness of trading activities.

　　To sum up, the core purpose of these restrictions is to protect the safety of traders’ funds, maintain the stable operation of the market, and ensure the fairness of transactions.

　　In addition, we have to remind candidates again that the purpose of our assessment is to select excellent traders and become our fund managers. This is the initial goal and ultimate goal of EagleTrader, and it will never change.

　　I would like to remind you that these restrictions seem to restrict trading freedom, but in fact, they help traders establish a more scientific trading framework through institutional design.

　　Data shows that traders who strictly abide by risk control rules have an account survival rate of more than 40% higher than those without constraints (refer to internal statistics from many trading companies).

　　In essence, this is a smart choice to exchange short-term opportunity costs for long-term stable profits.

　　So, in order to ensure the fairness and effectiveness of the profit sharing assessment, all candidates are required to strictly abide by the following rules:

　　1. Trading is prohibited 2 minutes before and after the publication of important data: Any trading operations are prohibited within 2 minutes before and after the publication of important economic data (such as CPI, non-agricultural employment data, etc.).

　　2. Comply with risk control rules:Candidates must strictly abide by the systematic risk control rules, including stop loss settings, position control, etc., to avoid the account being eliminated due to excessive risk exposure.

　　3. Market manipulation is prohibited:Candidates are not allowed to manipulate market prices through large-scale orders, frequent transactions, etc. to ensure the fairness of transactions.

　　4. Maintain account independence:Candidates are not allowed to share accounts with others or use other people’s accounts to conduct transactions to ensure the independence and authenticity of the assessment.

　　5. Check the announcement in a timely manner:Candidates must regularly check the announcements published by the EagleTrader platform to understand the latest rules and precautions.

　　We continue to reiterate the importance of the rules and provide clear guidance to candidates. We also hope that candidates can develop good trading habits and further improve their trading ability. Of course, we will continue to work hard to provide better services and support to all candidates.