Settings Wallet based cost-tracking

I bough eth on coinbase for 1000 (example number), then I sold it for 1080, still Koinly would report I made a loss, in the cost calculation you would see ETH I bought on Coinbase and ETH I bought afterwards on Bitpanda, so I suppose because of FIFO some calculation is made that leads to this. This all is really confusing and I don’t know if it’s actually correct. I know I made a gain on Coinbase, but Koinly will report a loss. If I change in the settings “Wallet based cost-tracking” to enabled now I would see the gain instead of a loss BUT I now also see that my total loses of the year goes up by ~10%, only because of enabling this setting, this doesn’t make sense to me. Please explain this to me.

Please see this article:

That’s interesting. Does anyone know if HMRC in the UK allows either option? It would seem too easy to be allowed to choose whichever method resulted in less tax to pay! I would have thought that HMRC would not allow wallet based cost-tracking, can anyone confirm?