Recovery System

Learn how to recover from losing trades by automatically adding positions at better price levels.

The Recovery System is an advanced feature that automatically adds positions to losing trades when price moves against you. By opening additional trades in the same direction at better prices, the system reduces your average entry price and helps you achieve profitability even when your initial trade doesn't perform as expected.

Important Notice

Recovery trading significantly increases your position size and market exposure. Each recovery trade is larger than the previous one, which can lead to substantial losses if the market continues moving against you. This feature is only recommended for experienced traders who understand position sizing and risk management.

Prerequisites

Before using recovery, ensure you understand how averaging down works, have tested the feature on demo accounts, and never risk more than you can afford to lose. Always start with minimum position sizes when first testing recovery.

Core Concepts

Averaging Down Strategy

When your trade moves against you, recovery automatically opens additional positions at better prices to lower your overall entry point.

Progressive Position Sizing

Each recovery trade uses a larger position size than the previous one, helping you reach profitability faster when the market eventually turns.

Unified Exit Management

All recovery trades are managed together with a single profit target calculated from your improved average entry price.

Key Benefits:

Improved Entry Price: Recovery trades at better levels reduce your average cost basis
Faster Recovery: Larger position sizes help you reach profit with smaller market retracements
Automated Management: The EA handles timing, sizing, and exit management without manual intervention
Flexible Control: You control maximum number of recovery trades and spacing between levels

Activation & Setup

Recovery can be activated in two ways: globally through the EA settings or selectively through signal parameters. This flexibility allows you to apply recovery to all trades or only to specific opportunities that you identify.

Mode	Description	How to Use
Disabled	Feature completely disabled (default)	No recovery trades will be placed
Enabled	Always active using EA settings	All trades will use recovery when conditions are met
Signal	Activated only by signal parameter	Add "re" parameter to signals that should use recovery

Signal Control Example: To enable recovery for a specific trade, add the "re" parameter to your signal:

LicenseID,EURUSD,buy,risk=0.01,sl=50,tp=100,comment=MyStrategy,re

When recovery is enabled globally (Enabled mode), it applies to ALL trades. When using Signal mode, only trades with the "re" parameter will use recovery - giving you precise control over which trades get this feature.

Recovery Management

The Recovery Management section contains seven settings that control how the recovery system operates. Understanding these settings helps you customize the system to match your risk tolerance and trading strategy.

Setting	What It Does	Recommended Values
Recovery Management	Controls when recovery is active	Disabled (safe) / Enabled (all trades) / Signal (selective)
Volume Calculation	How profit target is calculated	Initial Volume (simpler) / Average Volume (balanced)
Maximum Trades	Limits total recovery trades per position	1-3 for beginners, 2-5 for experienced traders
Initial Distance	Pips to wait before first recovery trade	20-30 pips for scalping, 40-60 pips for swing trading
Distance Multiplier	How much farther each recovery trade is placed	1.0 (equal spacing) to 2.0 (increasing spacing)
Lot Multiplier	How much larger each recovery trade becomes	1.5-2.0 for moderate risk, 2.0-3.0 for aggressive
Recovery Target	Profit target in pips for all trades combined	5-15 pips for quick exits, 20-50 pips for larger gains

How Recovery Activation Works

Understanding when recovery trades are placed helps you set appropriate parameters:

Initial Trade Placed: Your original trade is opened based on your signal or strategy
Price Moves Against You: Market price moves in the opposite direction to your trade
Distance Threshold Reached: When price moves beyond your Initial Distance setting, recovery activates
First Recovery Trade: EA opens a larger position in the same direction at the current (better) price
Additional Recoveries: If price continues against you, more recovery trades are placed at increasing distances
Unified Exit: All trades close together when the combined position reaches your profit target

Key Point: Recovery trades are always placed in the same direction as your original trade - if you bought EURUSD and it drops, recovery will buy more at lower prices to improve your average.

Understanding Position Size Growth

The lot multiplier determines how much larger each recovery trade becomes. Here are common scenarios:

Original Trade	Lot Multiplier	Recovery Sizes	Total Exposure
0.10 lots	1.5x	0.15, 0.23, 0.34 lots	0.82 lots (8.2x bigger)
0.10 lots	2.0x	0.20, 0.40, 0.80 lots	1.50 lots (15x bigger)
0.10 lots	2.5x	0.25, 0.63, 1.56 lots	2.54 lots (25x bigger)

Critical Warning

Position sizes grow exponentially with each recovery trade. With a 2.0 lot multiplier and 3 recovery trades, your final position will be 15 times larger than your initial trade. Always calculate your maximum possible exposure before enabling recovery!

Profit Target Calculation Methods

The Volume Calculation setting affects how your profit target is calculated:

Method	How It Works	Best For
Initial Volume	Target based only on your first trade size	Beginners - easier to reach, faster exits
Average Volume	Target based on average of all trade sizes	Experienced traders - more balanced approach

Example: With a 10-pip target and Initial Volume method, you need only $10 profit per lot of your original trade. With Average Volume method, you need $10 profit per lot of the average position size across all trades.

Practical Examples

Example 1: Conservative Recovery Strategy

Scenario: You buy EURUSD but price starts dropping - conservative recovery settings help limit risk

Trade	Price Level	Position Size	What Happened
Initial BUY	1.2000	0.10 lots	Original signal execution
Recovery 1	1.1970	0.15 lots	Price dropped 30 pips - first recovery
Recovery 2	1.1940	0.23 lots	Price dropped another 30 pips - second recovery

Settings Used: Max Trades: 2, Initial Distance: 30 pips, Distance Multiplier: 1.0, Lot Multiplier: 1.5, Recovery Target: 15 pips

Result: Average entry price is now ~1.1977. If price recovers to just 1.1992 (15 pips from average), all trades close with profit despite being 8 pips below the original entry.

Example 2: How Recovery Saves a Bad Trade

Your Trading Situation: You sold GBPUSD expecting it to fall, but it keeps rising against you

Without Recovery:

• Sold 0.20 lots at 1.3000
• Price rises to 1.3100 (100 pips against you)
• You're facing a significant loss
• Need price to drop all the way back to 1.3000 to break even

With Recovery System:

• Original: SELL 0.20 lots at 1.3000
• Recovery 1: SELL 0.30 lots at 1.3040 (40 pips up)
• Recovery 2: SELL 0.45 lots at 1.3080 (another 40 pips)
• Your average entry is now ~1.3052
• Need price to drop only to 1.3037 for 15-pip profit target

The Recovery Advantage:

Instead of needing a 100-pip reversal to break even, you now need only a 63-pip drop (from 1.3100 to 1.3037) to achieve profit. The recovery system turned a potential disaster into a manageable situation.

Example 3: When Recovery Reaches Maximum Trades

Scenario: Strong trend against you reaches your maximum recovery limit - what happens next?

Stage	Price Movement	EA Action	Your Options
Max Trades Reached	Price continues against you	No more recovery trades placed	Wait for reversal or manually manage position
Price Stabilizes	Market stops moving against you	All trades remain open, monitoring for exit	Patient wait for target or reduce target manually
Market Reverses	Price moves back in your favor	Automatic exit when profit target reached	Let system handle exit or take manual profit

Important: Once you reach your maximum number of recovery trades, the EA stops adding positions. Your existing trades will remain open and close together when the profit target is reached, but no additional recovery will occur.

Common Questions & Solutions

Question/Problem	Why This Happens	How to Fix It
My trade is losing but no recovery opened	Distance threshold not reached or feature disabled	Check Recovery Management is "Enabled" and reduce Initial Distance if needed (try 20-30 pips).
Recovery trades seem too small	Lot Multiplier set too low	Increase Lot Multiplier to 1.5-2.0 for more recovery power. Remember this increases risk.
Profit target never reached	Target too high or market trend too strong	Reduce Recovery Target to 5-15 pips or switch to Initial Volume calculation method.
Too many recovery trades placed	Maximum Trades set too high	Reduce Maximum Trades to 1-3. Start conservative and increase gradually with experience.
Position size grew too large	Lot Multiplier creating exponential growth	Use smaller Lot Multiplier (1.2-1.5) or reduce Maximum Trades. Always calculate total exposure first.
Recovery only works on some trades	Using Signal mode but not all signals have "re" parameter	Either switch to "Enabled" mode for all trades or ensure "re" is added to signals needing recovery.
Stop loss hit before recovery could help	Initial Distance larger than Stop Loss distance	Set Initial Distance smaller than your Stop Loss distance, or remove SL to let recovery work.
All trades closed unexpectedly	Profit target reached - this is normal operation	This is correct behavior. If target seems too low, increase Recovery Target setting.

Risk Management Reminders

Always test recovery thoroughly on demo accounts before live trading
Start with minimum position sizes - recovery can multiply your exposure by 10-20x
Calculate your maximum possible loss before enabling recovery
Consider removing stop losses when using recovery to give the system time to work
Never use recovery on money you cannot afford to lose completely

For complete parameter references and additional configuration options, see the Configuration Guide.