How is the ranking constructed in Signals? - page 6
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I can not believe that the NFA requirements for forex includes FIFO. As you on the forum were often wrong, even I remember this, I would be happy to see specific information.
Starting May 30, 2011 ***NDA is introducing "First In First Out" ( FIFO), a forex trading policy that complies with National Futures Association (NFA) regulations. If you keep multiple open positions of the same size and same currency pair, this new trading policy may mean important changes to how you manage these trades.
What is the NFA?
The National Futures Association (NFA) is an independent organization that regulates the U.S. futures industry. By law, all U.S. forex dealers must be registered Retail Foreign Exchange Dealer (RFED) with the U.S. Commodity Futures Trading Commission (CFTC). RFEDs must also be Forex Dealer Members (FDMs) of the National Futures Association. ***DA's registration number with the NFA is 0325821.
I could be wrong about this legislation and I am not interested in it.
Starting May 30, 2011 ***NDA is introducing "First In First Out" ( FIFO), a forex trading policy that complies with National Futures Association (NFA) regulations. If you keep multiple open positions of the same size and same currency pair, this new trading policy may mean important changes to how you manage these trades.
What is the NFA?
The National Futures Association (NFA) is an independent organization that regulates the U.S. futures industry. By law, all U.S. forex dealers must be registered Retail Foreign Exchange Dealer (RFED) with the U.S. Commodity Futures Trading Commission (CFTC). RFEDs must also be Forex Dealer Members (FDMs) of the National Futures Association. ***DA's registration number with the NFA is 0325821.
I could be wrong, I have not got into this stuff legally and I am not really interested.
Thank you, I admit you're right. It is not at all clear from a common sense point of view, why it is needed. Well, I somehow understand the ban on locking in the US to equalise forex and the stock market. And with FIFO it doesn't make sense at all. Especially the phrase"of the same size and same currency pair" highlights it. And if the sizes are different, then you can?
Either way, fuck such brokers.
Thank you, I admit that you are right. It's not at all clear from a common sense point of view why this is necessary. Well, the ban on locking in the US I somehow understand, to equalise forex and the stock market. And with FIFO it doesn't make sense at all. Especially the phrase"of the same size and same currency pair" highlights it. And if the sizes are different, then you can?
Either way, fuck such brokers.
Here's a good explanation of the FIFA rule but it's in English, but I don't think it's a problem for you.
How does FIFO work in our trading?
I think it's best to explain how FIFO works through an example. Let's say you want to trade GBP/USD using a scaling in strategy. You enter three long positions on GBP/USD at different times and different entry levels.
Position 1: Bought GBP/USD 100,000 units at 1.6200 entered on June 1
Position 2: Bought GBP/USD 100,000 units at 1.6300 entered on June 2
Position 3: Bought GBP/USD 100,000 units at 1.6400 entered on June 3
Total Position: 300,000 units long in GBP/USD
Now let's say the GBP/USD moved back to 1.6300 on June 4, and you wanted to close 100,000 units of your overall position, more specifically the second position opened at 1.6300. Your broker's platform won't allow you.
Under FIFO, the broker has to sell back the first 100,000 units that you purchased at 1.6200 because it was opened first. If you do decide to sell back 100,000 units, you'd end up with Positions 2 and 3 in your trading account.
What if you have multiple trades, but different position sizes?
We'll take a look at a slightly different example to explain what actions you can or cannot take in this scenario. Take a look at our new example position below.
Position 1: Bought GBP/USD 100,000 units at 1.6200 entered on June 1
Position 2: Bought GBP/USD 75,000 units at 1.6300 entered on June 2
Position 3: Bought GBP/USD 100,000 units at 1.6400 entered on June 3
Position 4: Bought GBP/USD 25,000 units at 1.6400 entered on June 4
Total Position: 300,000 units long GBP/USD
If you wanted to close 25,000 units with amarket order, that 25,000 units will be pulled from Position 1 because it is the oldest position.
If you wanted to close 200,000 units with amarket order, it will cycle through the oldest trades first, leaving you with 75,000 units in Position 3 and 25,000 units in Position 4.
If you wanted to close Position 4 manually, you can because there are no other positions of the same exact size older than Position 4. The same applies for Position 2.
Position 3 cannot be closed before Position 1. If you try to close Position 3, the platform will inform you that Position 1 needs to be closed first.
Finally, the FIFO rule also affects brokers who allow hedging, or opening opposite positions on the same currency pair. Because of the nature of FIFO, a new position in the opposite direction cannot be established until previous opposite positions have been cleared out.
Question to hall.... Dear service experts ... advise to answer a simple question - Does the maximum deposit load with a leverage of 1.10 affect the conditions of rating promotion (as with this leverage will be fixed using the entire deposit in trade) or it is better to use the leverage 1.500.... it seems a simple question and does not relate to disclosure of the rating calculation, but it makes a big secret
No. I did an experiment with a constant deposit load of 80% (1:50 leverage). This signal was among other signals with 10 times less loading. But the percentage of increase has the most direct impact.
There is a lot of rubbish accumulating at the end of the ranking table. I think this is due to the fact that the authors of these signals cannot disable them from public viewing on their own. Maybe we should prescribe this mechanism?