MeetAlgo Zone Recovery EA manages a losing trade with a “back-and-forth” hedging method known as the Zone Recovery algorithm. Instead of closing the trade at a Stop Loss, the EA opens opposite trades with larger lot sizes inside a fixed price zone and tries to close the whole group of trades at a combined profit.
You open a trade, manually or with one of the built-in entry strategies, and set a Take Profit. If price moves against you by the Recovery Gap, the EA opens an opposite trade with a larger lot size. If price turns again, the same step repeats. The result is a “trading channel” with an upper and a lower Take Profit level and a series of buy and sell trades inside it. When either Take Profit level is reached, all open trades of the cycle close together.
Important risk: every recovery step uses a larger lot size, so exposure, margin use and drawdown can grow quickly, especially in ranging or choppy markets. Price may not reach either Take Profit level before your margin or your configured loss limit is reached, and the whole cycle can close at a loss. Keep the initial lot small, use the Loss Taking Policy, and backtest your settings in the Strategy Tester before live use.
Key Features
- Easy to set up and supervise.
- Build in Automatic trading strategy. EA can manage your manual but also you can set full automatic. EA come with more then 16+ automatic trading strategy to open your initial trade.
- Break Event and Trailing. Break event or Trailing can be work both initial trade and hedge trade.
- Can be work on CDF, INDEX or Brazilian stock market
- Customization capabilities for future. A unique customization code will be assigned that will perform the relevant customization functions once the code is entered. Options will be controlled by an external file.
How does the Recovery Algorithm work?
Let’s say you just entered the market with a “buy market” position with 0.01 lots and your RecoveryGAP=200 points and TakeProfit=300 points. CAP Zone Recovery EA places a pending “stop sell” order to hedge your position instead of a Stop Loss in a predefined distance.
At this point, two scenarios are possible:
− Scenario 1: Market moves up (without reaching your Recovery activation level in the meantime) and hits your Take Profit. The trade is closed and your profit is fixed.
− Scenario 2: Market moves down and reaches Recovery activation level. A trade to the opposite direction is opened with different lot size. Again, for this order a pending order is placed hedging the new position. A new Take Profit is determined for all trades. This procedure is repeated with any change in market direction unless the Take Profit is hit and all trades are closed with combined profit.
The definitions and Recovery Algorithm are illustrated in the Recovery Zone Algorithm image bellow. In this example the initial trade is 0.01 lot, the RecoveryGAP is 200 points while the takeprofit is 300 points.
This is what CAP Zone Recovery EA is all about: Turning every trading session into earning money! At any point in time, any price level, you can enter a trade, and this amazing EA automatically adds several new positions by anticipating market movements. CAP Zone Recovery EA helps you optimize your Recovery level as well as multiple lot sizing. To get even better results, you have also the opportunity to enter a “Trailer Stop Loss” and a “Break Even functionality” for the initial trade.
MeetAlgo Zone Recovery EA uses lot sizing to try to exit the cycle with a combined profit. Which looks like a martingale system at first sight, is much more complex and intelligent. Whilst with a martingale you collect losses which soon eat up your equity, CAP Zone Recovery EA’s hedging mechanism helps you minimizing necessary margin.
MeetAlgo Zone Recovery EA can be used at any market session or time of the day – you only have to pay attention to the fact that there should be some volatility in the market – so avoid off-hours or lower volatility sessions!
Some few things you should be aware of: Avoid ranging markets or consolidating markets. Wait for a trending market to enter initial trades. Initial lot sizing should be selected carefully. Even after some market turns you should not face the situation that you run out of free margin. Make sure to have a broker with low spreads, commissions and slippage. And optimize your parameters properly for your underlying. Good settings reduce risk, but the cycle can still close at a loss. Backtest before live use.
Advantages:
- Recovery cycle inside a defined price zone with one combined Take Profit
- Initial trade with TP, Trailing Stop and Break Even functionality
- Hedging mechanism instead of Stop Loss
- Multiple lot sizing (more intelligent than simple martingale system)
- Intelligent lot sizing
Pay attention to:
- Select broker with best commissions and slippage
- Avoid ranging markets! Look for trending markets!
- Avoid off-hours or lower volatility sessions
- Choose initial lot sizing carefully! Avoid running out of free margin after some market turns!
Trading involves risk. You could lose more than your initial investment.
