Discrepancies between ZuluTrade accounts and non-hedging & FIFO accounts

Broker accounts that are non-hedging and FIFO compliant, when having open positions, may notice discrepancies between the ZuluTrade and the Broker's statement. As a result you may notice differences in the number of open trades, trade PnL, Equity etc.

This is only a temporary display discrepancy, and will have no effect at the end result of your trades.


A simplistic example

As your account complies with the FIFO rule, if there are more than one trades on the same currency pair open at your account, the one that was opened first should also close first (First In First Out).

To comprehend the affect that this has at the User’s account, please consider the following common scenario:

Your account receives two BUY EUR/USD trades by a Signal Provider in different times. If then the Signal Provider decides to close the trade which opened second (with the first one still being open) in your account due to the FIFO rule it will be the first BUY EUR/USD that will be closed. The second BUY EUR/USD will be closed when the Signal Provider sends a Close signal for the one remaining trade (the one that initially opened first).

Let’s see this scenario executed step by step:

Step ZuluTrade Ticket Profit (in pips) Broker Ticket Profit (in pips)
1 BUY EUR/USD 1 LOT at 1.4 123 n/a BUY EUR/USD 1 LOT at 1.4 123 n/a
2 BUY EUR/USD 2 LOT at 1.5 456 n/a BUY EUR/USD 2 LOT at 1.5 456 n/a
3 CLOSE BUY EUR/USD 2 LOT at 1.6 456 200 3a: CLOSE BUY EUR/USD 1 LOT at 1.6 123 200
3b: CLOSE BUY EUR/USD 1 LOT FROM THE 2 LOT TRADE (part of the 456) at 1.6 456 100
3c: The remaining 1 LOT BUY EUR/USD from trade 456 appears a new trade (ticket 789) which opened at 1.5 789 n/a
4 CLOSE BUY EUR/USD 1 LOT at 1.7 123 300 CLOSE BUY EUR/USD 1 LOT at 1.7 789 200
Total: 500 Total: 500

Let’s assume you have 1 BUY EUR/USD for 1 Standard Lot opening from Signal Provider X at market price 1.4 (ticket 123). This will be depicted at your Broker account as is. Now let’s say the same Signal Provider opens another BUY EUR/USD for 2 Standard Lots at market price 1.5 (ticket 456). This again will be depicted at your Broker account as is.

Now, let’s assume the Signal Provider closes the 2nd BUY EUR/USD for 2 Standard Lots (ticket 456) at price 1.6. This will close at your ZuluTrade account with a profit of 200 pips (2 Standard Lots x 100pips).

At your Broker account, due to the FIFO rule the initial trade of 1 Standard Lot BUY EUR/USD (ticket 123) will be closed at price 1.6 (with a profit of 200 pips). From the 2nd trade of BUY EUR/USD for 2 Standard Lots (ticket 456) only 1 Standard Lot will be closed at 1.6 (with a profit of 100 pips) and the remaining 1 Lot will be appear as a new BUY EUR/USD position opened at 1.5 (ticket 789)

So, after this, you will have 1 BUY EUR/USD for 1 Standard Lot opened at 1.4 at your ZuluTrade account and 1 BUY EUR/USD opened at 1.5 at your Broker account. These will close when Signal Provider X closes the 1st trade (ticket 123) at price 1.7.

So, total profit at both ZuluTrade and Broker will be 500 pips.

To sum up, Zulutrade history depicts the execution of the advice of a Signal Providers as confirmed by the broker. It does not represent the trading actions as per the broker's statement, but when all trades of each currency pair are closed the overall PnL in both ZuluTrade and the Broker will be identical.