First in First Out Rule for US Traders
First In First Out by Mr. Aleksandrov from Forex Academy: https://eaforexacademy.com/
First in First out
This video is oriented to the traders from the US.
First of all, you can read a lot in the forums, people complaining from the United States that they cannot hedge and they cannot trade multiple strategies and Expert Advisors in one account.
But in this video, I will explain to you how you can do that. Especially how you can trade multiple strategies and multiple Expert Advisors in one account without breaking the first in first out rule.
So I will explain what is the first in first out rule for the people that don't know it.
Very simply, this is when you are trading many strategies or you want to open multiple trades on one currency pair.
First, you need to close the trade that you opened first.
First in first out. The first trade you opened, you should close it first as well.
So, for example, if you opened a trade based on strategy 1 then you open a trade based on strategy 2, you cannot close the trades from Strategy 2. You should first close the trade from strategy 1. I guess this way it makes more sense and it's easy to understand.
And most of the brokers in the United States, they pretty much refuse to open a second trade at all and you cannot hedge. You cannot open a buy position and a sell position at the same time because obviously, you will need to follow this FIFO rule or first in first out.
Now, when it comes to manual trading, you really don't have issues because usually, you cannot trade more than 2-3 strategies at the same time.
When you are doing it all manually and you have to follow the chart and it's hard when you're doing a couple of strategies. When you're trading with Expert Advisors, this is what we do in Forex Academy, there is the issue.
You cannot put just 100 Expert Advisors in one account or even 20 or 10 because it's against the first in first out rule and the broker will not execute these trades.
What you can do in this case, you can open a Demo account. First,
you can do it on many accounts. You can install multiple Meta Trader accounts on your platform.
And we have a topic in the forum how you can do that. One of our traders
used, I think, 32 Meta Traders in one machine and he explains that.
Check out our Forum to learn more about the First In First Out:
How to install more than 1 MetaTrader platform:
https://eaforexacademy.com/forums/topic/open-more-more-demo-accounts-on-mt4/
First In First Out Solutions:
https://eaforexacademy.com/forums/topic/ea-trading-with-fifo-and-no-hedging-constraints/
https://eaforexacademy.com/forums/topic/ea-trading-with-fifo-and-no-hedging-constraints/
But having many Meta Trader platforms installed on the computer is pretty heavy. And as well, it's a lot of work.
So how can you do it on one account?
You can open a Demo account and each Expert Advisor, you can put it with a different lot.
So the first Expert Advisor, the first strategy, you can put with 0.01, then with 0.02, and so on. Obviously, you have a lot to go.
And when you follow the strategies, their performance in FX Blue,
you should be looking not at the net profit but at the net pips.
So just arrange the Expert Advisors according to their performance, and scroll to the right to find the column with the pips. Because when you're trading with different lots, the performance in pips is the same.
And this doesn't break the first in first out rule. You will be able to trade many Expert Advisors in the account this way. And from there, you can see which are the Expert Advisors that bring you most profit on a Demo account and you can put them into the live account.
Now, the other issue is that US traders cannot find brokers which allow hedging. And one broker is FXChoice which we have listed in our trusted brokers' page.
Basically, the trusted brokers' page is only with the brokers that we have tested. But once again, we don't suggest these brokers. The idea of having the trusted brokers page was to avoid the scam brokers with the beginner traders.
The brokers that are listed on the page are the brokers that I have been
using and so far I don't have any issues.
So use that trick, use different lots when you are testing the Expert Advisors and you have no issue using EA Studio and export an unlimited number of strategies.
Now, lastly, I want to say that the FIFO might be really smart.
Obviously, there were people in the United States that were thinking, much smarter people than me, I guess, and they were thinking about it for a long time and they implemented it.
And it protects the traders, obviously, because it's a common mistake that people just open randomly long, short trades, and they blow their accounts very quickly.
However, this is not a guarantee that you will not lose money because you can lose your money with a single trade. This is why I have recorded a special video all about money management, have a look at it.
First in First out
This video is oriented to the traders from the US.
First of all, you can read a lot in the forums, people complaining from the United States that they cannot hedge and they cannot trade multiple strategies and Expert Advisors in one account.
But in this video, I will explain to you how you can do that. Especially how you can trade multiple strategies and multiple Expert Advisors in one account without breaking the first in first out rule.
So I will explain what is the first in first out rule for the people that don't know it.
Very simply, this is when you are trading many strategies or you want to open multiple trades on one currency pair.
First, you need to close the trade that you opened first.
First in first out. The first trade you opened, you should close it first as well.
So, for example, if you opened a trade based on strategy 1 then you open a trade based on strategy 2, you cannot close the trades from Strategy 2. You should first close the trade from strategy 1. I guess this way it makes more sense and it's easy to understand.
And most of the brokers in the United States, they pretty much refuse to open a second trade at all and you cannot hedge. You cannot open a buy position and a sell position at the same time because obviously, you will need to follow this FIFO rule or first in first out.
Now, when it comes to manual trading, you really don't have issues because usually, you cannot trade more than 2-3 strategies at the same time.
When you are doing it all manually and you have to follow the chart and it's hard when you're doing a couple of strategies. When you're trading with Expert Advisors, this is what we do in Forex Academy, there is the issue.
You cannot put just 100 Expert Advisors in one account or even 20 or 10 because it's against the first in first out rule and the broker will not execute these trades.
What you can do in this case, you can open a Demo account. First,
you can do it on many accounts. You can install multiple Meta Trader accounts on your platform.
And we have a topic in the forum how you can do that. One of our traders
used, I think, 32 Meta Traders in one machine and he explains that.
Check out our Forum to learn more about the First In First Out:
How to install more than 1 MetaTrader platform:
https://eaforexacademy.com/forums/topic/open-more-more-demo-accounts-on-mt4/
First In First Out Solutions:
https://eaforexacademy.com/forums/topic/ea-trading-with-fifo-and-no-hedging-constraints/
https://eaforexacademy.com/forums/topic/ea-trading-with-fifo-and-no-hedging-constraints/
But having many Meta Trader platforms installed on the computer is pretty heavy. And as well, it's a lot of work.
So how can you do it on one account?
You can open a Demo account and each Expert Advisor, you can put it with a different lot.
So the first Expert Advisor, the first strategy, you can put with 0.01, then with 0.02, and so on. Obviously, you have a lot to go.
And when you follow the strategies, their performance in FX Blue,
you should be looking not at the net profit but at the net pips.
So just arrange the Expert Advisors according to their performance, and scroll to the right to find the column with the pips. Because when you're trading with different lots, the performance in pips is the same.
And this doesn't break the first in first out rule. You will be able to trade many Expert Advisors in the account this way. And from there, you can see which are the Expert Advisors that bring you most profit on a Demo account and you can put them into the live account.
Now, the other issue is that US traders cannot find brokers which allow hedging. And one broker is FXChoice which we have listed in our trusted brokers' page.
Basically, the trusted brokers' page is only with the brokers that we have tested. But once again, we don't suggest these brokers. The idea of having the trusted brokers page was to avoid the scam brokers with the beginner traders.
The brokers that are listed on the page are the brokers that I have been
using and so far I don't have any issues.
So use that trick, use different lots when you are testing the Expert Advisors and you have no issue using EA Studio and export an unlimited number of strategies.
Now, lastly, I want to say that the FIFO might be really smart.
Obviously, there were people in the United States that were thinking, much smarter people than me, I guess, and they were thinking about it for a long time and they implemented it.
And it protects the traders, obviously, because it's a common mistake that people just open randomly long, short trades, and they blow their accounts very quickly.
However, this is not a guarantee that you will not lose money because you can lose your money with a single trade. This is why I have recorded a special video all about money management, have a look at it.
