Forex robots (called also expert advisors) trade according to predefined trading algorithms and complex mathematical calculations. They trade and make profit for the forex traders. But depending on the current market conditions each robot may have some bad periods and make some losing trades. This is absolutely normal and forex traders should not worry about this at all.
Our forex robots WallStreet Forex Robot 2.0 Evolution and WallStreet ASIA Evo have integrated recovery system. This is a parameter/setting called RecoveryMode. Here is what the user guide says for RecoveryMode:
"RecoveryMode true/false: when RecoveryMode is activated, an algorithm effectively compensates current drawdown through smooth increases of trading volumes. This mode is active only when AutoMM is greater than zero (AutoMM > 0). Before activating RecoveryMode, please bear in mind that it can significantly increase risk to your account. For this reason, RecoveryMode should be used at low values of the AutoMM parameter."
We will try to explain the RecoveryMode in details using examples. For example we have the following account:
- $1000 balance
- We trade with 2% risk (AutoMM=2)
- Result lots = 0.02 lot
Lets say we have one losing trade. The robot close it on 100 pips loss. This makes -$20 loss on our account. We would like to compensate this loss and we enable RecoveryMode by setting its value to TRUE (RecoveryMode=true). According to the definition for RecoveryMode in the user guide the robot should start increasing the risk for the next open trades. Yes but not mondatory. Most of the cases the robot continues to trade with the same lots even with lots lower than 0.02 (in our case). This happen because our balance has been decreased by the last loss. This is very normal and logical. After a few trades on the same risk as before the robot starts to increase the lots with small steps. Usually the step is 0.01 lots. In our case the recovery lot size will be 0.03 lots. The mathematical formula is 0.02 lots + the step 0.01 = 0.03 lots. The robot may continue to trade with the same risk for the next a few trades. If for this period of time it has not been able to compensate the previous loss it will increase the risk again. Now the new lots size will be 0.04 lots. The same scenario will be repeated: a few trades on the same risk and higher risk for the next trades. This procedure may continue until the robot successfully compensate the previous losses.
What happen when we have second loss during recovery process?
If during recovery process the robot makes additional losses they will be compensated too. The robot sum all losses and continue with the recovery untill they are compensated successfully. Remember the robot checks 50 trades back. Therefore make sure that you have checked "All History" in the Terminal -> Account History tab. Your all history must be visible. Otherwise the robot will not be able to find that there are previous losses and then the recovery process will not be started at all.
NOTE: RecoveryMode works only when the AutoMM is greater than 0 (zero). This means that MM must be enabled. This is required because the complex MM functions are used for increasing the lot size.
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