EA Forex Academy – Algorithmic & Manual Trading Courses Forums Forex Trading Forum Trade could not be closed due to FIFO violation

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  • #7412
    davidfarley
    Participant

    Hello Petko,

    I am also receiving email messages in MetaTrader, titled “Trade could not be closed due to FIFO violation”. Do you know how the Expert Advisors, or MetaTrader, cam overcome, or solve, this situation?

    Thank you!

    #7413
    davidfarley
    Participant

    Here is the exact mail message from MetaTrader.

    Your trade could not be closed because you have an older trade on the same currency pair. To comply with NFA FIFO regulations, you must first close your older trade. Please note, continued FIFO violations may lead to your account being locked.

    This is coming from my demo account.

    Thank you!

    #7416

    Hello David,

    I see now you are in the US, aren’t you? There is the FIFO violation if you trade with many EAs with same lots. It is not like you are breaking the rules or something, this is just how US brokers work.

    Basically you are not able to trade more than one Expert Advisor for one currency pair in one account. The rule stands exactly as they wrote to you, that you should close first your older trade.

    There are many traders in the US complaining about this FIFO violation rule, but that comes from the regulations in the country, and the legit brokers must follow it. I am not really the man who will comment it if they decided that this is good, then it is 🙂

    Kind regards,

    #7439
    jacpin2002
    Participant

    Ah, I see now why the FIFO thing was brought up. Oh, my. I wonder if I may be doing something bad with the way that I am trading then. Does this mean my broker is not good because I have been able to do this. Crappers now I have to only do one EA per currency pair. Ugh, that is horrible.

    #7443
    Thetrader
    Participant

    Yes, if you are in US and your broker allows hedging and makes FIFO violation that is quite suspicious, are they regulated?

    #7444
    jacpin2002
    Participant

    Whelp, now I feel bad because it looks like they’re not regulated. Sheesh. Why oh why do they make it so hard for US traders??? Looks like I need to find another broker that accepts US clients.

    #7446
    Thetrader
    Participant

    It is really strange that the most democratic country is puts such restrictions, and the FIFO violation s just a too, to push the traders to their stock exchanges

    #7447
    Thetrader
    Participant

    Jacpin,you need to check if it is your fault to trade with them.i mean if they allow it, you trade, you redraw money and it is fine, did you try to redraw?

    #7450
    davidfarley
    Participant

    Petko, thank you for the answers. This really throws a wrench into using your 99 Expert Advisors strategy. I really like the idea. My broker does allow for multiple practice sub accounts, but I would need 33 sub accounts to test the 99 Expert Advisors. I’m not sure I can have that many sub accounts. I’d also have to be running 33 instances of MetaTrader.

    Then I’d have to have multiple live accounts to truly take advantage of the top 10-15 Expert Advisors.

    FX Blue – can you combine multiple broker accounts to consolidate tracking in one FX Blue account?

    Have you seen what other US traders are doing to use multiple Expert Advisors per currency pair? Do you have any suggestions?

    Thank you!

    #7452
    davidfarley
    Participant

    Petko, and others, I just spoke to a colleague of mine who uses the same US broker. He said if you change the lot size per Expert Advisor, then you can place multiple Expert Advisors on the same currency pair in the same account.

    If that is the case, how much would you recommend deviating from the 0.1 lots in the Advisors? Would you create a range from 0.05 to 0.15 lots? If so, that would give me a total of 11 Expert Advisors per currency pair, or 33 Expert Advisors per account. Then if I have three practice accounts, or instances of MetaTrader, I will be able to trade the 33 Expert Advisors per currency pair. This actually seems doable.

    I have created an RPA (Robotic Process Automation) robot to load the 99 Expert Advisors into one MetaTrader account. Now I’ll have to modify the robot to populate 3 MetaTrader accounts, and the robot can dynamically change the lot sizes also.

    Then with a live account, if I want to trade up to the top 15 Expert Advisors, I can use the lot range of .08 to .12 for each currency pair. That would allow me to trade 5 different charts per currency pair and should be doable in one account.

    Also, for FX Blue, I discovered you need to create a separate account for each broker account – practice or live. Then you can create a Portfolio in FX Blue where you can combine as many accounts as you want and analyze the entire portfolio at the same time. Sweet!

    Does this sound like a good strategy or do you have any other suggestions?

    Thank you!

    #7455

    Hello David,

    quite interesting here. As I said to Jacpin I am not in US, and I can not really give 100% answer about the FIFO violation. Just I do not want to mislead you. But I have read a lot and many traders complained about this limitation.

    Anyway for the trading I could help you of course.

    First, when you say your friend is trading with the same broker, do you mean the one Jacpin uses or yours? It would be great to share the name(just do not put links). This way the other US traders will have an idea which broker could be used.

    Now regarding the trading, I get your idea. One thing is in FX BLue you should start looking in the results for the pips, and not for the Net Profit. You will need to find which EAs make most pips.

    The whole idea is not really hard to be done, specially if you know what you are doing.

    That RPA that you mentioned places all the EAs you have in the folder to the opened charts? Only for one currency pair or for all?

    Kind regards,
    Petko A

    #7462
    jacpin2002
    Participant

    @thetrader-Yeah, you would think some freedoms would be allowed, but alas it is not. That’s ok. I just tested taking some of my profit out and I had no issues. I don’t know if it is because it is cryptocurrency or not. But I was able to withdraw and the bitcoin was sent within 24 hours. As of right now, I was able to withdraw 50% of what I initially invested, so I am happy about that. In looking at the trade history, it actually looks like my broker (Coinexx) is following the FIFO rule. Or my EAs just happen to work so that maybe this issue hasn’t come up yet. All in all, I’m sticking with who I have until something arise, but will keep an eye on things.

    #7467
    davidfarley
    Participant

    Hello Petko,

    The US broker who allows different lot sizes to overcome the FIFO rule is OANDA.

    Thank you for the suggestion about analyzing the growth in FX Blue. Because we would have different lot sizes, we would want to look at pips and not dollars.

    The RPA I built performs the following tasks:

    1. Copies the files to the MetaTrader expert advisors folder – only the current month remains in the folder.
    2. Refreshes the expert advisors in MetaTrader.
    3. Closes all open MetaTrader chart windows.
    4. Loops through each expert advisor file in the MetaTrader expert advisors folder, performing these steps:
    4a. Identify the currency pair and time frame based on the file name.
    4b. Open chart window in MetaTrader for the identified currency pair and change the time frame for that chart window to the identified time frame.
    4c. Add the expert advisor to the chart window that was just opened.
    4d. Dynamically changes lot size based on a configuration that is set.
    5. After all expert advisors are added to individual chart windows, the auto trade button is checked, or enabled.

    So basically, the RPA robot is built to do everything. I am now going to modify the robot to work with three different MetaTrader accounts.

    I’ll let you know if I get it to work.

    Thank you!

    #7469

    Hey David,

    that sounds pretty interesting. Let me know how it goes with the robot, I would be interested to update some of the courses with it. Of course you will let me know how much that would cost.

    About the broker, it is great you share, so other traders from US will have an idea if they face the FIFO violation. Just please do not put links, anyway we will need to remove the post.

    Kind regards,
    Petko A

    #7470
    davidfarley
    Participant

    Hello Petko,

    I can understand about not sharing links.

    My plan is to get this all setup within the next few days. I’ll let you know how it goes.

    Perhaps we can discuss more off the forum, if you would like.

    Thank you!

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