News Filter
Also known as: news pause, economic-event filter
What is it?
A news filter is a rule that pauses automated trading around scheduled high-impact news events, such as central-bank rate decisions or major economic data releases. Around these moments the market often behaves very differently from normal: the spread - the gap between the buy and sell price - widens sharply, and price can jump or gap violently in seconds as everyone reacts to the news at once. A news filter tells your automation to stop opening new trades for a buffer window before and after the event, then resume once conditions settle.
The value for a beginner is protection from the worst execution conditions. During a big release, an order can fill far from the price you expected, and price can spike straight through your stop loss, turning what should have been a controlled small loss into a larger one. By simply sitting out those chaotic minutes, the filter keeps your automation away from slippage and whipsaws it was never designed to handle.
The trade-off is honest: pausing also means you skip any trades that might have worked during the news, so a filter is not free upside. It is best driven by a reliable economic calendar and set with a buffer on both sides of the event rather than just the exact release minute, since the volatility tends to build before and linger after. A news filter improves the conditions your system trades in; it does not change the underlying risk of the trades it does take.
Why it matters: Major releases cause slippage and whipsaws that can blow through stops; sitting out protects automation from chaotic conditions.
It avoids the worst execution conditions but also skips trades that might have worked.
Real-world example
The bot stops opening trades two minutes before and after a rate decision, avoiding the spread blowout around it.
How SignalBots handles it
News-aware pausing can gate SignalBots automation so entries hold off around scheduled high-impact events.
Pro tip
Filter on a reliable economic calendar and include a buffer window on both sides of the event, not just the minute itself.
Common pitfalls
Filtering only the exact release minute, so trades still open into the pre- and post-news volatility.
Frequently asked questions
Why pause trading around news?
Spreads widen and price can gap through stops during releases; pausing avoids slippage-heavy, unpredictable execution.
How wide should the news pause window be?
Use a buffer on both sides of the event, not just the release minute, since volatility usually builds beforehand and lingers afterward.
Does a news filter mean I lose fewer trades overall?
It avoids the worst conditions, but it also skips trades that might have worked. The aim is steadier execution, not guaranteed better results.
Where does the filter get its event schedule?
From an economic calendar that lists upcoming high-impact releases. A reliable calendar is essential, or the filter may pause at the wrong times.
Can price still gap through my stop if I use a filter?
If you have no open trade during the news, the filter protects you. Trades already open before the pause can still be hit by a gap, so plan exits ahead.