CAP Zone Recovery User Guide (Indroduction)

20 June 2017, 09:20
Mohammad Ali
1
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CAP Zone Recovery EA User Guide


1.0) Introduction
2.0) Keys Definitions
3.0) How does the Recovery Algorithm 
4.0) No hedge Mode Recovery
5.0) Input Parameters
6.0) Backtest Result



1.0)  Introductions


Image to have an EA which generates profit only, unable to lose money. Unbelievable? NO.


CAP Zone Recovery EA is your tool to turn losing trades into winning trades by using a smart "back-and-forth" hedging mechanism. I call it the "Never Lose Again Strategy". Let the price move to anywhere it likes - the awesome CAP Zone Recovery EA will make profits out of the situation. Guaranteed! The secret behind this amazing EA is a famous trading algorithm known as "Zone recovery algorithm" or "The Surefire Forex Hedging Strategy".

CAP Zone Recovery EA is extremely easy to use. You just open a trade in a trending market - no matter which direction. You just enter a Take Profit level, no Stop Loss! Again: You will never again lose money because your trade hits the Stop Loss! Instead, this EA uses a smart hedging technology turning even losses into wins. In case the market moves in the unfavorable direction, the Zone Recovery Algorithm starts hedging your trade by placing an opposite order, but with multiple lot size. If market should turn again, the same procedure starts again. The result is a "trading channel" with an upper TP and a lower TP and an alternating series of buy and sell trades at specific levels and with different lot sizes within this channel. Once one of the TP levels is hit - and we all know it is absolutely sure that either the higher TP or the lower TP is reached - all open trades will close with a combined profit.


2.0)  Keys Definitions

READ THIS SECTION TO UNDERSTAND THE ALGORITH BASED ON WHICH THE EA WORKS

 

The main use of this expert advisor is not to initiate trades but instead to recover trades that have been determined to have become losing trades. Though some version of this expert advisor may include a strategy for initiating trades the focus is how to recover trades that have been imitated by the trader or another expert advisor.

 

Keys Definitions

The following is a list of key definitions whose parameters are vital when using the Recovery Algorithm. It is important to understand them for risk management purposes as they determine the future lot sizes.

 

Initial Lot: This is the Lot Size of the first trade being initiated.

Initial Trade: The first trade being initiated. Depending on the outcome of this trade (Loosing or Profitable) it will be determined if the recovery algorithm will be initiated.

Initial Mode: When you have only one trade (only your first initial trade).

Hedge Mode: When you have more than one trade in same side. Example you open Buy then loss, EA open Buy again, now you have two buy. This situation calls Grid Mode.

 Hedge Mode: When you have more than one trade in different side. Example you have both Buy and Sell trade. This situation calls Hedge Mode.



3.0) 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. What can we predict for sure? The market will move - either up or down. It can take some time, but it will move because it simply has to!

 

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.

What is amazing and turns this EA into a money printing machine: Both, scenario 1 and scenario 2 end with a 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.

CAP Zone Recovery EA makes sure to exit the session with a combined profit by intelligent lot sizing. 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.

CAP 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. When all settings are properly chosen you will see, it is really very hard to lose money with this system!

 

Advantages:

     No more losses, only wins!

     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!


EA Input Parameters Details



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