How Forex Recovery Bot Works
Forex Recovery Bot is an advanced MetaTrader 4 / MetaTrader 5 expert advisor, which was built with the purpose of recovering losing trades and account drawdown. The bot operates in three steps, which are described in detail below:
Step 1. Losing Order Hedge
Once the bot is activated the first operation it performs is to hedge the total volume of losing order. This step “locks” the original downdraw in place, and makes it so that the downdraw of the original losing order(s) cannot grow larger.
In the example image above, you can see that the losing order is a 0.05 buy order on EUR/USD. When Forex Recovery Bot is started the first operation that the bot performs is to open a 0.05 sell order on EUR/USD. This hedging order prevents our original 0.05 losing trade from growing in drawdown.
Step 2. Recovery Orders
The next operation of the bot will be to open recovery orders. The profit from the recovery orders will be used to close part of the original losing trade.
The bot offers two different recovery order algorithms:
Grid – The bot will use a grid system to build orders. This is best for ranging or lower volatility markets.
Zone – The bot will use a system of stop orders to build orders. This is best for strong trending markets. A video guide explaining the zone recovery order system can be viewed here – https://youtu.be/Srt6B_pAIe4
Step 3: Order Recovery & Closure
The bot uses a smart algorithm to break your total losing order down into smaller parts. For example, if the total losing order volume is 0.05 lots, the bot is able to break the losing order down and close it in smaller parts of 0.01 lots.
When the recovery order profit parameters are met, the bot will automatically close all recovery orders and part of the losing order together for a small profit. The bot will then repeat the process of opening new recovery orders until the entire losing order is recovered.
As demonstrated in the image above, the bot closed a group of sell recovery orders, together with part of the hedge, and original losing order for a profit of $1.46. The bot will now restart the process and continue closing smaller parts of the losing order until it is recovered.
Step 1. Losing Order Hedge
Once the bot is activated the first operation it performs is to hedge the total volume of losing order. This step “locks” the original downdraw in place, and makes it so that the downdraw of the original losing order(s) cannot grow larger.
In the example image above, you can see that the losing order is a 0.05 buy order on EUR/USD. When Forex Recovery Bot is started the first operation that the bot performs is to open a 0.05 sell order on EUR/USD. This hedging order prevents our original 0.05 losing trade from growing in drawdown.
Step 2. Recovery Orders
The next operation of the bot will be to open recovery orders. The profit from the recovery orders will be used to close part of the original losing trade.
The bot offers two different recovery order algorithms:
Grid – The bot will use a grid system to build orders. This is best for ranging or lower volatility markets.
Zone – The bot will use a system of stop orders to build orders. This is best for strong trending markets. A video guide explaining the zone recovery order system can be viewed here – https://youtu.be/Srt6B_pAIe4
Step 3: Order Recovery & Closure
The bot uses a smart algorithm to break your total losing order down into smaller parts. For example, if the total losing order volume is 0.05 lots, the bot is able to break the losing order down and close it in smaller parts of 0.01 lots.
When the recovery order profit parameters are met, the bot will automatically close all recovery orders and part of the losing order together for a small profit. The bot will then repeat the process of opening new recovery orders until the entire losing order is recovered.
As demonstrated in the image above, the bot closed a group of sell recovery orders, together with part of the hedge, and original losing order for a profit of $1.46. The bot will now restart the process and continue closing smaller parts of the losing order until it is recovered.
Updated on: 21/06/2024
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