ANALYSIS OF FIFO RULE FOR Forex. com
TEST 1
Trade 1 Lot size = 0.01 TP = 96.1 SL = 94.9
Trade 2 Lot size = 0.01 TP = 96.05 SL = 94.95
Result: Trade 1 and Trade 2 both set to TP = 96.1 SL = 94.9
Trade 3 Lot size = 0.01 TP = 96.15 SL = 94.85
Result: Trade 1,2, and 3 all set to TP = 96.1 SL = 94.9
TP and SL of trades 2 and 3 are changed to be equal to TP and SL of first trade.
When closing trades Trade 1 first, Trade 2 second, Trade 3 last.
===================================================================================
TEST 2
Trade 1 Lot size = 0.01 TP = 96.1 SL = 94.9
Trade 2 Lot size = 0.02 TP = 96.05 SL = 94.95
Result: Trade 1 and Trade 2 both set to TP = 96.1 SL = 94.9
Trade 3 Lot size = 0.03 TP = 96.15 SL = 94.85
Result: Trade 1,2, and 3 all set to TP = 96.1 SL = 94.9
Trade 4 Lot size = 0.03 TP = —– SL = —–
Result: Trade 1,2,3, and 4 all set to TP = 96.1 SL = 94.9
TP and SL of trades 2,3,4 are changed to be equal to TP and SL of first trade.
When closing trades Trade 1 first, Trade 2 second, Trade 3 third, and Trade 4 last.
===================================================================================
TEST 3
Trade 1 Lot size = 0.01 TP = —– SL = —–
Trade 2 Lot size = 0.01 TP = —– SL = —–
Result TP = —– SL = —–
Trade 3 Lot size = 0.01 TP = —– SL = —–
Result TP = —– SL = —–
When closing trades Trade 1 first, Trade 2 second, Trade 3 last.
===================================================================================
TEST 4
Trade 1 Lot size = 0.01 TP = —– SL = —–
Trade 2 Lot size = 0.02 TP = —– SL = —–
Result TP = —– SL = —–
Trade 3 Lot size = 0.03 TP = —– SL = —–
Result TP = —– SL = —–
When closing trades Trade 1 first, Trade 2 second, Trade 3 last.
===================================================================================
TEST 5
Trade 1 Lot size = 0.01 TP = —– SL = —–
Trade 2 Lot size = 0.02 TP = 96.05 SL = 94.95
Result TP = —– SL = —–
Trade 2 will have its TP and SL changed to be the same as Trade 1
When closing trades Trade 1 first, Trade 2 second, Trade 3 last.
===================================================================================
CONCLUSIONS:
1. Trade 2, 3, 4, etc will always have their SL and TP modified to be the same as Trade 1.
2. Trade 1 must always be closed first followed by Trade 2 followed by Trade 3, etc…