Only FIFO orders NFA - no placing of stop loss or takeprofit

So we had a break from the implementation of the FIFO rule by NFA, deferred till 31 Jul 2009. See this note from NFA. Why do we need more time to have this new rule implemented?

Well, it is not just a simple first-in-first-out handling of orders. It also means you cannot put stop loss to your orders!! Essentially, a stop loss is an opposing order and you are not allowed to issue this order in advance.

Imagine you place two orders in the same direction (because you can't place opposing orders anymore ie no hedging). The first order you have a Takeprofit of say 100 pips. The second order you have no takeprofit or stoploss. You trail the second order such that the second order will be taken out say with a trailing of 30pips. But it does not work like this anymore. The first order must be closed first before the second ie FIFO. So as a result, you cannot place takeprofit or stoploss levels now because the first order must always be processed first.

Ok, the brokers in US are coming out with solutions like OCO (One Cancel the Other) which means you can still place stoploss or takeprofit via OCO.

What does this means for EA users? More reprogramming required, more testing needed but little time left.

So what are the brokers with MT4 platform doing:

1. Broker1 - use different lot sizes so that the orders are treated differently
2. Broker2 - drop MT4 becasue it cannot be changed to handle new ruling; so use another platform or use UK broker
3. Broker3 - still not a member of NFA

PS: Remember, all this applies to US brokers only.