Auto Recovery EA
MetaTrader Auto Recovery EA
RobotFX Auto Recovery is an expert advisor designed to recover the loss of a losing trade by opening an opposite trade, or more, if it’s the case. If you are familiar with, this is the trade management part of the RobotFX Fluid EA, with less features (HedgeZone). A very simple but effective way to hedge a losing trade so it will close if not in profit, at least at break-even. Basically it is a hedging expert advisor for MetaTrader.
Technically, the Auto Recovery EA places an opposite pending order at the Recovery Zone distance (in pips) from the opening price, using a higher lot size. This replaces the classic stoploss which, when hit, leads to a loss. If the price doesn’t go in your favor - and so TakeProfit is not reached to close the trade - but instead reverses and hits the pending order, that pending order becomes an active order. At the same time, the EA will open another pending order, at the same level with the first one and of the same kind, but with (again) a higher lot size. Some traders like to call this advanced zone recovery (the area between the opposite trades) (shortly ALR EA).
The pending orders’ lot size is calculated so that the profit will always increase (if the price hits them and continues further).
Eventually the price will break in either up or down direction and the basket will close when the profit reaches MinProfit - this is in dollars. You have the option to set the MaxOrders to limit the total number of opened trades and also to instruct the EA to close all of the trades (ForceCloseAtMaxOrders) regardless of the profit (can be negative).
Check the picture below to understand how hedging works in forex trading. Mind that the lot size of the pending orders depends on the recovery zone width (the “RecoveryZone”) and the TakeProfit distance.
The pending orders’ lot size is calculated so that the profit will always increase (if the price hits them and continues further).
Eventually the price will break in either up or down direction and the basket will close when the profit reaches MinProfit - this is in dollars. You have the option to set the MaxOrders to limit the total number of opened trades and also to instruct the EA to close all of the trades (ForceCloseAtMaxOrders) regardless of the profit (can be negative).
Check the picture below to understand how hedging works in forex trading. Mind that the lot size of the pending orders depends on the recovery zone width (the “RecoveryZone”) and the TakeProfit distance.
RobotFX Auto Recovery settings
- Enter your Client Email - fill this with your email IF you are using a paid version of this EA on a LIVE account
- RecoveryZone - the number of pips from the opened trade where you want the hedge order to be placed; technically it is the height of the recovery zone
- TakeProfit has 2 functions:
- Normal take profit for the opened trades, if CloseTradesAtTakeProfit is set to true and the real profit is bigger than MinProfit
- The ratio between this and the RecoveryZone can be used to calculate the next recovery trade order lotsize (UseHedgeMultiplier must be set to false). A ratio of 1:1 (for example RecoveryZone 50, TakeProfit 50) will make the hedging order to be double the size of the previous/initial order
- HedgeMultiplier - IF UseHedgeMultiplier is set to true, this is the multiplier used to calculate the size of the next hedging order, based on the previous one(s)
- HedgeSingleOrder - if enabled, it will set the hedging lotsize based on the last order lotsize instead of considering the entire baskets of opposite trades
- MaxOrders - the maximum number of recovery trades allowed to be opened by the EA; use as a safety measure to restrict the EA opening too many trades, such as when a consolidation zone occurs
- MinProfit - minimum profit which, once reached, allows the EA to close a basket of trades (see CloseTradesAtMinProfit) or a trade at TakeProfit level (although at this point the profit should already be higher than MinProfit)
- BreakEven - once the price will move in your favor this number of pips (away from the opening price), the EA will set the stoploss at the trade opening price
- UseHedgeMultiplier - whether or not to use a lotsize multiplier for the hedging orders, instead of the ratio between the RecoveryZone and the TakeProfit
- HedgeMultiplier - the lotsize multiplier for the hedge orders, if the UseHedgeMultiplier is set to true
- WhenMinProfitIsReached - choose what to do when the basket profit reaches the MinProfit:
- CloseTradesAtMinProfit - once this profit is reached, the EA will start closing all opened trades on the chart. Set it to 0 if you want to close all trades at a cumulative break-even; however, please mind that between closing the first trade and the last one, the price might move and the profit (after close) might be slightly higher or lower than the MinProfit
- CloseLosersAndSetBreakEven - close the losing trades and place the stop-loss of the winning trades at a distance defined by the trader (see below)
- DoNothing - self explanatory
- TrailingStop for CloseLosersAndSetBreakEven (pips) - if #2 is triggered (above), this will be the trailing-stop for the remaining (winners) opened trades
- TrailingStep for CloseLosersAndSetBreakEven (pips) - if #2 is triggered (above), this will be the trailing-step for the remaining (winners) opened trades. Also, it defines the distance from the current price where the EA will place the stoploss (right after CloseLosersAndSetBreakEven will close the losing trades)
- CloseTradesAtTakeProfit - close trades at TakeProfit, if they are all profitable (ie profit > MinProfit)
- CloseTradesAtMaxOrders - whether or not to allow the EA to close all orders when the MaxOrders number is reached - will probably lead to some losses as the EA won't consider the profit and the MinProfit
- Slippage - the maximum distance, in pips, allowed for the price to move between sending a trade order to the server and execution (by the broker’s server)
- MagicNumber - leave this to -1 to trade manually (ie use the EA to hedge your personal trade) or set to match the MagicNumber of your other EAs (if you want the Auto Recovery to manage trades opened by other experts)
- TradeComment - use this to add a comment to the loss recovery trades opened by this EA, so you can monitor the logs easily
- ShowComment - displays information about the broker/trade(r)/basket on the chart
- ForceHedgeAtTradeOpenFail - if a hedge order is not triggered and the price “jumps” over it (example: gaps formed during the weekend) the EA will open a hedging trade and recalculate the recovery zone, the (other) opposite order etc.
- TestingLOTSIZE - applies only when testing the EA in the Strategy Tester and it defines the lotsize of the opened (first) random trade, as percentage of the entire equity (ie 0.01 = 1%, 0.1 = 10%, 1 = 100%)
one of the best hedging expert advisors for metatrader
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