what happens with stoplosses at FIFO brokers? | Forex Factory

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what happens with stoplosses at FIFO brokers?

  • #1
  • First Post: Edited 8:46pm Mar 22, 2010 8:21pm | Edited 8:46pm
How do FIFO conforming brokers handle stoplosses?

consider the following chart:

Inserted Code
 # stoploss_A

 # shortentry_A


 # stoploss_B

 # shortentry_B

 <- price
will this work and only the statement will be written FIFO conforming? Or will the broker just silently rearrange (equivalent profit-wise but potentially confusing for newbies) to:

Inserted Code
 # stoploss_B (the size of A == all the remaining lots)
 
 # shortentry_A
 
 
 # stoploss_A (the size of B == complete or partial A or A plus partial B)
 
 # shortentry_B
 
 <- price
or even (this would actually break strategies):
Inserted Code



 # shortentry_A
 
 
 # stoploss_A + stoploss_B
 
 # shortentry_B
 
 <- price
How does it behave now, how do brokers handle it, now some time after this all is in effect? Are there differences or is there some common scheme?
  • #2
  • Last Post: Mar 23, 2010 7:00am Mar 23, 2010 7:00am
hmm...

from the overwhelming amount of responses to this posting I conclude that almost nobody uses US based MT4 brokers anymore. I was thinking about implementing a complicated FIFO workaround for FIFO brokers and re-arrange the ordering of all stoplosses after every fill but it seems it is not worth the time. I will wait for MT5 instead where I can simply use pending buystop or sellstop orders instead of stoplosses until I support this type of bucket shops again.
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