Tips For Running Forex Recovery Bot Safely
Forex Recovery Bot uses a grid style trading system to recover orders. It is important to note that like any trading system, it is possible that the bot adds additional drawdown. This guide will be used to provide tips to improve the safety of the bot and reduce to chance of account failure.
It is best to start the bot with low - medium drawdown. The larger drawdown that the account is in, the harder it becomes to recover. While it is still possible to use the bot in higher drawdown situations, it should be noted to use more conservative settings because the bot has fewer funds to manage recovery orders.
The starting lot size of the recovery orders should be strongly considered. Each time the bot opens a new recovery order it will apply a multiplier to the recovery order starting lot size, causing each new order to be larger than the previous. Therefore, we always recommend starting the smaller lot sizes to remain on the side of caution. We have published a guide regarding starting lot size recommendations here.
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. For example, if the price of the symbol is trending upward, the bot will only open buy recovery orders. This can help reduce the chance of additional drawdown added by the bot - at the expense of a potentially longer recovery time.
Also inside of the bot settings you will find an input setting called "Maximum lot size". This setting can be used to control the maximum largest recovery order that can be used by the bot. As described above, as more recovery orders are added the larger the lot sizes become. Traders can use this setting to reduce the largest size of recovery orders that the bot can open.
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.
As always, we strongly recommend all customers test their settings on a demo account or by backtesting before using them on a live account.
Be Mindful of Starting Drawdown
It is best to start the bot with low - medium drawdown. The larger drawdown that the account is in, the harder it becomes to recover. While it is still possible to use the bot in higher drawdown situations, it should be noted to use more conservative settings because the bot has fewer funds to manage recovery orders.
Strongly Consider Recovery Starting Lot Size
The starting lot size of the recovery orders should be strongly considered. Each time the bot opens a new recovery order it will apply a multiplier to the recovery order starting lot size, causing each new order to be larger than the previous. Therefore, we always recommend starting the smaller lot sizes to remain on the side of caution. We have published a guide regarding starting lot size recommendations here.
Consider 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. For example, if the price of the symbol is trending upward, the bot will only open buy recovery orders. This can help reduce the chance of additional drawdown added by the bot - at the expense of a potentially longer recovery time.
Consider Using Max Lots Settings
Also inside of the bot settings you will find an input setting called "Maximum lot size". This setting can be used to control the maximum largest recovery order that can be used by the bot. As described above, as more recovery orders are added the larger the lot sizes become. Traders can use this setting to reduce the largest size of recovery orders that the bot can open.
Consider 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.
Use a Demo Account / Backtest Before Going Live
As always, we strongly recommend all customers test their settings on a demo account or by backtesting before using them on a live account.
Updated on: 20/07/2024
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