Trade could not be closed due to FIFO violation

[davidfarley]

I confirmed this morning with a representative of the US broker and the broker website, that FIFO rules apply to the same currency pair AND the unit size (lot size) of the trade.

I specifically asked, as a follow up question, the example of opening a trade for 0.02 lots on a currency pair, and then opening a trade on the same currency pair for 0.03 lots. The representative confirmed those trades are independent of each other and the FIFO rules do not apply to those two trades.

US FIFO rules only apply for the same currency pair and the same unit size.

Let me know if anyone understands differently.

Thank you!

[Petko Aleksandrov]

That is quite interesting to know about the FIFO Violation, and it will be useful to all US traders. And it will be great to be confirmed from other brokers too.

I have Kuwaiti residence and US in the same time, so have the Kuwaiti allows me to open accounts easily. I read the topic above and Petko is write that you should concentrate on pips if you use different lot sized.

The hard thing will come when you select one asset to trade on real account. So if you have 2-3 EAs for EURUSD for example, you will need to place them with different lots as well. Of course, if you are trading with huge lots as 1.23, 1.24 etc is not an issue, but if you trade with 0.01 and 0.02, it would be double trading for one.

[davidfarley]

Thank you for the response! I’ll try to update how things work once I have all the testing setup. I plan to have a robot do all the setup in testing of 99 EAs in three different MetaTrader platforms (33 each).

[Petko Aleksandrov]

That is some good information for all US traders!

Does this mean that the Never losing formula could be executed without a problem? If you have watched my courses with it, the lots are different with every time we enter. Now only the first 2 are same, but since they are with 1.4, It is not a problem to change it with 1.41 just to be different.

That will give solutions to many trades in US, and they will be cool because they are within the FIFO violation

[davidfarley]

Sounds correct. I do admit I need to learn about the Never Losing Formula. Which course is that in?

[Petko Aleksandrov]

Hey David,

It is in the crypto courses. Actually it will be interesting for you, because many students wrote to me that they automated the formula, and are very happy with the results. However, I teach that it should be controlled manually.

The idea there is that we use Expert Advisor to open the trade, and after that we use the Never Losing formula to exit with the TP or worst case scenario on Break Even. We eliminate the losses totally.

I had in couple of courses, but these two are dedicated to the Never losing formula:

1. Ethereum trading robot – Cryptocurrency never losing formula

2. Bitcoin Trading Robot – Cryptocurrency never losing formula

Actually the second course was our best seller and over 4000 students joined it during the last one year.

Now, what I am looking with the formula is the volatility.

It is in my to do list to create a course about Forex and the Never Losing Formula.

Kind regards,

[davidfarley]

Awesome! Thank you Petko. I actually purchased the Etherum course but have not started it yet. Soon as I finish the robot for the forex strategy, I will start that course.

[Petko Aleksandrov]

Glad to hear that. Make sure to organize your time. It is very important in trading.

[Petko Aleksandrov]

Hello Jacpin,

can you please share your experience regarding the FIFO Violation? Is it same with your broker as David said, possible to trade one asset in one account but with different lots?

Kind regards,
Petko A

[Petko Aleksandrov]

Hello Jacpin,

thank you for sharing your experience. That is really great information for the other traders from US that might be reading this topic.

Now keep in mind that trading with different lot sizes will not change the strategy.

The only hard thing could be the decision which EAs to trade with smaller/bigger lots.

But possible solution could be the ones that are having better results on the Demo to be used with a bit bigger lots.

For example, if you have 10 EAs on Demo for one currency pair, and you want to take the Top 3 from there, you can trade with 0.13 the one with highest profit, with 0.12 the second one, and with 0.11 the third.

However, once placed on the live account you will need to follow pips result, and not net profit.

Also, if you keep them on Demo account, you can follow their performance there(having in mind that Demo and Live should open same trades).

Anyway, this gives kind of freedom to the US traders around the FIFO violation.

[Petko Aleksandrov]

It will be great if you share more! I have some friends in US that they still consider having the EA Studio because of the FIFO violation. So if there are more solutions here will be great.

Petko is fine to discuss all(only links to brokers are not tolerated).

[Petko Aleksandrov]

Hello Jacpin,

thank you for letting me know this. I will let them read the forum a bit more 🙂

Thanks!

[Petko Aleksandrov]

I did not know there is such rule in US. Does not make sense to me..

[Petko Aleksandrov]

Hello Chingi,

yes, many traders from US complain about the FIFO rule, but it is very strict. The idea behind is to keep the traders from risk, but actually the risk is not in hedging but in everyone’s willing to risk. This is about the money management (huge lots trading in small account.

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