RobotFX Auto Recovery is an expert advisor designed to hedge a 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. A very simple but effective way to hedge a losing trade so it will close if not in profit, at least at break-even.
Technically, Auto Recovery places an opposite pending order at the
StopLoss distance (in pips) from the opening price, using a higher lot size. 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, the 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 zone (between opposite trades)
The pending orders’ lot size is calculated (if the price hits them and continues further) so the profit will always increase.
Eventually the price will continue in either up or down direction and the basket will close when the 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 StopLoss) and the TakeProfit distance.
