First in, First out - page 2

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Kenny Rogers:
That is very weird, in my trading experience on the futures market, FIFO is about order filling. I gotta brush up on all these new regulations by the NFA. But I guess it doesn't really strikes me because I'm so used to these rules already set in place on the Futures market. There was never hedging or choosing with part of the order to close. I don't even think about it.

Here's where the NFA outlined their ruling http://www.nfa.futures.org/news/PDF/CFTC/CR2_43_ForexPriceAdj_112408.pdf

It will bring the rules in line with those that are currently used in equities and futures. But most brokers keep individual tickes for each order that is placed instead of combining the amounts and averaging the entry price. So traders have built their strategies to manage individual tickets.

Will be interesting to see how this affects expert advisors. Curious, is anyone using expert advisors and concerned about the FIFO rules? Have you started to modify them to reflect new closing rules?

 

The new FIFO rule will take SL and TP and limit orders with it people

 

Please read the story in this link.... it seems as though FIFO may not change as much as some think. Time will tell...

http://www.gftforex.com/about/2009-articles/gft-20090702-NFA.asp

 
jsaffron1:
Please read the story in this link.... it seems as though FIFO may not change as much as some think. Time will tell... National Futures Association (NFA) | Stop and Limit Orders | GFT

Thanks for information. after reading GFT artical it apears that NFA do not say anything about not using SL and TP. they just want FIFO to follow.

GFT platform looks more smarter than other platforms.

 

I just saw the instructional movie put out by FXCM. The new ruling is a mess to deal with. Also FXCM stated that in the U.S. we will only be able to trade 1:100,000. This will kill profits, if we make any. I have already told IBFX that if they are following suit, I will stop trading Forex and go back to trading stock options and stock indexes. It is a sad day for Forex in the U.S. if this is the truth of how things are going to be handled from now on!!

Dave

P.S. If the trade ratio is firm for the U.S., one options is to take our Forex Business overseas (At a higher risk to us U.S. traders).

 

We can see that MT4 will be useless in all US brokers but does the same applies for MT5 since it makes only one position for every pair, and could that new rule be behinde the changes in MT5?, or will MT be deported from the US all together?

 
I might not know what I'm talking about, but I can see how FIFO and SL or TP will work side by side for GFT

Like if you opened one EUROUSD position with 100 pips SL and a 100 pips TP and then opened another one with a 10 pips SL and a 10 pips TP then the second position will be closed before the first one which is a violation of FIFO

so I think GFT is only able to keep SL and Tp because they are a dealing desk and the positions you see on your platform are only an indication of what's going on in there pool rather than being actual separate positions on the market like in the STP type ,

Besides GFT already only provides 100000 lots for standard accounts so they don't have to change a thing............I think that their being a dealing desk with 1lot trade size is why I didn't choose them
 
jsaffron1:
Please read the story in this link.... it seems as though FIFO may not change as much as some think. Time will tell... National Futures Association (NFA) | Stop and Limit Orders | GFT

It's really the metatrader/position-based execution platforms that werent built with FIFO in mind.

But the hedging rule could throw some stuff off with some of the automated trading. Especially like PFG Best (USA, MT4 broker) is allowing INTRADAY hedging. But if any hedge positions are not closed by 5pm EST, all positions in the same market up to the hedging positions will be exited on a first in-first out basis.

So if your ea has 10 long positions and then at 4:59 places a sell position, you might be screwed.

You would have to have a separate acct ea that watches for hedging positions and then will cancel them. Or modify existing EA if needed.

 
 
nmx:
We can see that MT4 will be useless in all US brokers but does the same applies for MT5 since it makes only one position for every pair, and could that new rule be behinde the changes in MT5?, or will MT be deported from the US all together?

Metaquotes has said they will have a solution for MT4 by the July 31 deadline but will be interesting to see how it affects functionality.

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