Safety Center - Tips For Running The Bot Safely & Trend Filter
This guide will cover the topic of bot safety, and the safety settings which are found within the bot input settings.
This guide includes:
Safety Tips
Safety Settings
Trend Filter Settings
Other Safety Settings
Unlike other EAs on the market, Forex Recovery Bot is unique in the sense that when the bot is started, it is already starting at a disadvantage of the account being a losing state. Therefore, it is extra important that we keep safety in mind when using the bot in order to maximize our chance of recovery success. In this section of the guide we will cover the best safety tips which should be noted when using the bot.
The most important factor in recovery success is the starting drawdown that the account is in when recovery is started. The higher the drawdown that the account is in when recovery is started, the harder it becomes to recover. Therefore, we suggest starting recovery before the account reaches greater than 40% drawdown. The bot can still of course recover drawdown if it's greater than 40% (which we have demonstrated in our YouTube video series ) however it just means that there is more risk and more conservative recovery settings should be used.
Forex Recovery Bot utilizes a grid style recovery system to generate profit, and recover losing orders. As with any grid style trading system, it is important to keep in mind that the bot can increase it's trading lot sizes overtime. Each time that the bot opens a new trade in the recovery grid it will add a multiplier to it. Therefore, the starting lot size (controlled by "recovery order starting lot size") should be highly considered. We have published an article which covers the starting lot size for different balances here.
It is usually best to start with a conservative lot size. You can always adjust the starting lot size in the future during the recovery process if you wish to.
Additionally, for further details about how the bot operates please visit the guide here.
As covered in the section above; the bot utilizes a grid style trading system. This means that each time a new order is added to the recovery grid the bot will increase it's lot size. For risk management, we have included a setting in the bot called "maximum lot size". This setting can be used to control the maximum largest recovery order that can be used by the bot.
For example, let's say that we have a starting recovery lot size of 0.01 and we set maximum lots to 0.10. This means that the bot will start the recovery trade grid at 0.01 lots. Each time that a new trade is added to the grid it will increase in size until it reaches 0.10 lots. Once our maximum is reached, each time the bot adds a new trade to the grid it will be in the size of 0.10 lots until the grid is closed. It will then start a new grid at 0.01 lots.
As you can see this setting can be pivotal for traders to control their risk or have limited margin in the account.
Inside of the bot recovery settings you will find an input setting called "trend filter". When this setting is enabled the bot will read the current trend of the symbol, and only open recovery orders in the overall direction of price. We cover this setting in full detail further down in this guide.
The bot includes a news filter, which can be used to pause or close recovery grids before large news events. As you know, large news events can cause sudden and sharp price moment - which has the possibility to add additional drawdown to the account. The news filter can be used as an effort to avoid this from happening.
We strongly recommend that clients test the bot in demo trading or backtesting. The bot has lots of settings, so it is crucial that the trader fully understands how the bot operates before using it on a live account. Each order of the bot comes with three different account licenses, which the trader can change at anytime inside of the client area - so it's very easy to start with a demo account and switch to your live account when you're ready. Additionally, a guide explaining how to backtest the bot can be found by clicking here.
Starting in version 2.5 of the bot we have included a safety settings section. We have included these settings to improve the safety of recovery trades while still maintaining it's effectiveness at restoring losing orders.
The trend filter is applied to recovery trades. Upon opening a recovery grid, the bot will determine the current price trend and only open a grid that's in the same direction as price trend. This is done in an attempt to reduce the chances that prices goes against our grid positions.
Trend Filter: Enabled or disable the use of a trend filter for recovery orders. If enabled, the bot will determine the current trend in price, and only open recovery orders in the same direction of the trend. For example: Current trend is "up". The bot will open a buy recovery grid. The bot will only open a sell grid if the trend changes.
Trend Filter Timeframe: The timeframe that the bot will use when determining trend. For example: If set to H1, then the bot will use the H1 chart when determining the trend.
Trend Filter Sensitivity: The sensitive will determine how often the bot will detect a change in the trend.
LOW = the bot will detect trend changes much more frequently. Can lead to false trend changes in choppy markets.
MEDIUM = the bot will detect trend changes at a more average pace.
HIGH = the bot will take a longer period of time to detect trend changes, but more accurate and stronger trends.
Only Add New Orders With Trend: When enabled the bot will only add new recovery orders when it matches the trend. For example: Currently the trend is up. The bot opens a buy grid. Price begins to move down, but the buy grid is still open. The bot detects that the trend is now down. The bot will start a sell recovery grid, and stop adding new orders to the buy grid. The bot will resume adding new orders to the buy grid once the trend returns to up.
The bot also includes the following settings in the safety section:
Maximum lot size: The maximum lot size that the bot will use for recovery trades.
For example, if set to 0.10 then the bot will open recovery trades starting from your recovery order starting lot. If the bot reaches 0.10 lots, then the bot will not use any larger lot sizes, and instead continue opening 0.10 trades until the recovery grid is closed.
Maximum number of recovery trades: The maximum number of recovery trades that the bot will use in a grid. If the maximum number is reached the the bot will not open any new orders until the grid is closed.
This guide includes:
Safety Tips
Safety Settings
Trend Filter Settings
Other Safety Settings
Safety Tips
Unlike other EAs on the market, Forex Recovery Bot is unique in the sense that when the bot is started, it is already starting at a disadvantage of the account being a losing state. Therefore, it is extra important that we keep safety in mind when using the bot in order to maximize our chance of recovery success. In this section of the guide we will cover the best safety tips which should be noted when using the bot.
Tip 1) Starting Drawdown
The most important factor in recovery success is the starting drawdown that the account is in when recovery is started. The higher the drawdown that the account is in when recovery is started, the harder it becomes to recover. Therefore, we suggest starting recovery before the account reaches greater than 40% drawdown. The bot can still of course recover drawdown if it's greater than 40% (which we have demonstrated in our YouTube video series ) however it just means that there is more risk and more conservative recovery settings should be used.
Tip 2) Starting Lot Management
Forex Recovery Bot utilizes a grid style recovery system to generate profit, and recover losing orders. As with any grid style trading system, it is important to keep in mind that the bot can increase it's trading lot sizes overtime. Each time that the bot opens a new trade in the recovery grid it will add a multiplier to it. Therefore, the starting lot size (controlled by "recovery order starting lot size") should be highly considered. We have published an article which covers the starting lot size for different balances here.
It is usually best to start with a conservative lot size. You can always adjust the starting lot size in the future during the recovery process if you wish to.
Additionally, for further details about how the bot operates please visit the guide here.
Tip 3) Risk Management - Utilize Max Lots Settings
As covered in the section above; the bot utilizes a grid style trading system. This means that each time a new order is added to the recovery grid the bot will increase it's lot size. For risk management, we have included a setting in the bot called "maximum lot size". This setting can be used to control the maximum largest recovery order that can be used by the bot.
For example, let's say that we have a starting recovery lot size of 0.01 and we set maximum lots to 0.10. This means that the bot will start the recovery trade grid at 0.01 lots. Each time that a new trade is added to the grid it will increase in size until it reaches 0.10 lots. Once our maximum is reached, each time the bot adds a new trade to the grid it will be in the size of 0.10 lots until the grid is closed. It will then start a new grid at 0.01 lots.
As you can see this setting can be pivotal for traders to control their risk or have limited margin in the account.
Tip 4) Risk Management - Trend Filter Mode
Inside of the bot recovery settings you will find an input setting called "trend filter". When this setting is enabled the bot will read the current trend of the symbol, and only open recovery orders in the overall direction of price. We cover this setting in full detail further down in this guide.
Tip 5) Risk Management - News Filter Settings
The bot includes a news filter, which can be used to pause or close recovery grids before large news events. As you know, large news events can cause sudden and sharp price moment - which has the possibility to add additional drawdown to the account. The news filter can be used as an effort to avoid this from happening.
Tip 6) Use a Demo Account / Backtest Before Going Live
We strongly recommend that clients test the bot in demo trading or backtesting. The bot has lots of settings, so it is crucial that the trader fully understands how the bot operates before using it on a live account. Each order of the bot comes with three different account licenses, which the trader can change at anytime inside of the client area - so it's very easy to start with a demo account and switch to your live account when you're ready. Additionally, a guide explaining how to backtest the bot can be found by clicking here.
Safety Settings
Starting in version 2.5 of the bot we have included a safety settings section. We have included these settings to improve the safety of recovery trades while still maintaining it's effectiveness at restoring losing orders.
Trend Filter Settings
The trend filter is applied to recovery trades. Upon opening a recovery grid, the bot will determine the current price trend and only open a grid that's in the same direction as price trend. This is done in an attempt to reduce the chances that prices goes against our grid positions.
Trend Filter: Enabled or disable the use of a trend filter for recovery orders. If enabled, the bot will determine the current trend in price, and only open recovery orders in the same direction of the trend. For example: Current trend is "up". The bot will open a buy recovery grid. The bot will only open a sell grid if the trend changes.
Trend Filter Timeframe: The timeframe that the bot will use when determining trend. For example: If set to H1, then the bot will use the H1 chart when determining the trend.
Trend Filter Sensitivity: The sensitive will determine how often the bot will detect a change in the trend.
LOW = the bot will detect trend changes much more frequently. Can lead to false trend changes in choppy markets.
MEDIUM = the bot will detect trend changes at a more average pace.
HIGH = the bot will take a longer period of time to detect trend changes, but more accurate and stronger trends.
Only Add New Orders With Trend: When enabled the bot will only add new recovery orders when it matches the trend. For example: Currently the trend is up. The bot opens a buy grid. Price begins to move down, but the buy grid is still open. The bot detects that the trend is now down. The bot will start a sell recovery grid, and stop adding new orders to the buy grid. The bot will resume adding new orders to the buy grid once the trend returns to up.
Other Safety Settings
The bot also includes the following settings in the safety section:
Maximum lot size: The maximum lot size that the bot will use for recovery trades.
For example, if set to 0.10 then the bot will open recovery trades starting from your recovery order starting lot. If the bot reaches 0.10 lots, then the bot will not use any larger lot sizes, and instead continue opening 0.10 trades until the recovery grid is closed.
Maximum number of recovery trades: The maximum number of recovery trades that the bot will use in a grid. If the maximum number is reached the the bot will not open any new orders until the grid is closed.
Updated on: 24/12/2024
Thank you!