How to get around FIFO problems

[NTD21]

I'm in the USA which apparenty makes this a huge pain in the A$$. I keep getting FIFO errors (FIFO Violation) and trade failed errors because (Hedging is prohibited)

Aside from moving to another country does anyone know a way around this problem?

 

[Vinz]

I'm in the USA which apparenty makes this a huge pain in the A$$. I keep getting FIFO errors (FIFO Violation) and trade failed errors because (Hedging is prohibited)

Aside from moving to another country does anyone know a way around this problem?

CAN YOU DO A SCREENSHOT OF THE ERROR SIR

 

[Chris]

I'm in the USA which apparenty makes this a huge pain in the A$$. I keep getting FIFO errors (FIFO Violation) and trade failed errors because (Hedging is prohibited)

Aside from moving to another country does anyone know a way around this problem?

I presume the broker is OANDA right?
Here's a few steps you can try:
1. Increase Consecutive Signals (Galileo will make fewer trades).
2. In MT4, in the Common tab, select Long Only or Short Only, not Long & Short

 

[psmello11]

I have Oanda as well and continually get FIFO violation errors. I have taken the steps suggested above (Short only, bearish signals = 6) but still get these errors. I have also assigned the Risk % to 0.52135671 in an effort to create some variability but this is folly when applied. If there were some way for the user to assign a range of lots for trading such as: 0.08 to 0.13 where each trade that fires randomizes a number in that range.

 

[Chris]

As I noticed this only happens at OANDA for some reason.
But if you use the Risk the Lotsize should be 0,that's when the Risk works only.
Perhaps try and add a Max Order of 2.This way it will only open 2 trades for that specific currency possibly avoiding FIFO.

 

[psmello11]

Thank you but that defeats the purpose of the bot. I can setup an account with forex.com and see if the same issue occurs.

 

[Chris]

Forex.com definetly works,never saw any FIFO violation errors over there so it's definitely worth a shot

 

[holytrinitysir]

I get FIFO violations when closing a trade from time to time on Forex too. I thought that was normal.

 

[VuleV]

Can someone explain what is exactly FIFO violations?

 

[holytrinitysir]

The FIFO rule, or First in, First Out, requires that the first (or oldest) trade be closed First if a trader has more than one open trade of the same pair and size. This rule is the US National Futures Association policy and applies to traders using US brokers. So, in simple words, the FIFO rule means that forex traders must close positions based on chronological order (earliest trades "First in" will "First out" -first will be closed).

 

[VuleV]

The FIFO rule, or First in, First Out, requires that the first (or oldest) trade be closed First if a trader has more than one open trade of the same pair and size. This rule is the US National Futures Association policy and applies to traders using US brokers. So, in simple words, the FIFO rule means that forex traders must close positions based on chronological order (earliest trades "First in" will "First out" -first will be closed).

Thank you so much for this information, did not know about this rule for the US brokers. So what is the solution? you are closing trades manualy?

 

[josephserrano15]

Have the same issue with MT4 and OANDA (Only FOREX broker available in the US). I tried all the recommended settings, but no luck. Did anyone was able to figure it out ?

 

[sbarnette]

Joe Newbie here, and yes, you can get FIFO and Hedge errors using Forex.com.

 

[kaxlen]

Can the bot be configured to account for FIFO? It seems like it should be able to factor it into it's predictions as it watches the market.

 

[Chris]

Here's a few steps that might help with the FIFO regulations:
1. Increase Consecutive Signals (Galileo will make fewer trades).
2. In MT4, in the Common tab, select Long Only or Short Only, not Long & Short

 

[kevinkdog]

I am getting FIFO violation even when there are consecutive long positions, so suggestion #2 above does not apply.

How do I implement suggestion #1 "Increase Consecutive Signals" ? I am using MT4.

Thanks

 

[psmello11]

I ran Short Only and didn't get violations, but it also wouldn't close a trade that was opened more recently than an older one. This was on Forex.com If there was a setting where the lot size could be altered for each trade, Oanda will allow this. For instance:

• Trade 1: 1000 (0.01 - micro lot)
• Trade 2: 1001
• etc.

This way you're not impacted by the lot size when the bot is making 10's of trades. You still are bounded by choosing Long or Short because the broker will net zero any opposing trades (i.e. LONG 1000 and SHORT 1000).

This is my second inquiry/request for a lot size variation setting. Barring that, I can't use the bot in the U.S. they way it's supposed to be used. I'm not interested in having only 2 trades going at once. I'm writing my own bot using the method I described above but would rather use this one if this change could be made. Thanks!

 

[kevinkdog]

I ran Short Only and didn't get violations, but it also wouldn't close a trade that was opened more recently than an older one. This was on Forex.com If there was a setting where the lot size could be altered for each trade, Oanda will allow this. For instance:

• Trade 1: 1000 (0.01 - micro lot)
• Trade 2: 1001
• etc.

This way you're not impacted by the lot size when the bot is making 10's of trades. You still are bounded by choosing Long or Short because the broker will net zero any opposing trades (i.e. LONG 1000 and SHORT 1000).

This is my second inquiry/request for a lot size variation setting. Barring that, I can't use the bot in the U.S. they way it's supposed to be used. I'm not interested in having only 2 trades going at once. I'm writing my own bot using the method I described above but would rather use this one if this change could be made. Thanks!

yes I agree, the FIFO rule can be adhered to when the lot size of consecutive long trades is increased/decreased. I just bought this bot, and was told by Galileo people that it was NFA FIFO compliant as is, which does not seem to be the case. I am in the same boat as you @psmello11 !!

 

[terrabola]

Did anyone come up with a resolution here, aside from setting the max order to 1? Feel like this renders the bot useless for FX in US markets.

 

[terrabola]

Did anyone come up with a resolution here, aside from setting the max order to 1? Feel like this renders the bot useless for FX in US markets.

FWIW, I'm moving on to non-US brokers.