Using ELS Orders for FIFO accounts

Brief

The article describes how to handle risk management using ELS orders on FIFO accounts

Details

If you need to close position partially and activate the stop and limit orders immediately execution opening order, use ELS orders. To create ELS order please use exactly the same way as for regular stop/limit orders (i.e. just attach stops and limits to entry or market order), but specify the EntryLimitStop flag. In this case a pair of entry orders with special behavior will be created. These orders behave as following:

1) Until the main (market or entry order) is not executed yet, these orders exists but remains inactive.

2) As the regular stop/limits, ELS orders can be pegged (i.e. rate is specified as distance in pips). The rate is calculated at the moment when the main order is executed (i.e. position is created).

3) While position is not created, the stop and limit orders changes their amount when the main order amount is changed.

4) When orders are activated and the market condition is met, the orders are executed no more than the amount actually held on the account, so, they will never open an opposite position.

So, the difference comparing the regular stop/limit orders are:

1) These orders do not close the exact position for which they are created, but the oldest of the existing positions.

2) When position is created, the orders amount will not be changed automatically when the position is closed completely or partially using other orders.