USER GUIDE
1. What is the Zone Recovery Hedging Mechanism
Imagine using a trading system that’s built not to lose — a strategy designed to recover every losing trade and close in profit. Sounds impossible? Not anymore.
The AZ Trade Recovery EA introduces an advanced Zone Recovery Hedging Mechanism (ZRH) — a smart, automated approach that turns potential drawdowns into profit. This strategy is based on a professional-grade hedging technique known as the Zone Recovery Algorithm or the Surefire Forex Hedging Strategy.
Unlike traditional trading where a Stop Loss locks in a loss, this system uses counter-trades (hedging) to neutralize the drawdown and shift the overall result back into profit. The assistant opens opposite-direction trades with adjusted lot sizes whenever the price moves against your initial position, creating a recovery zone where both sides of the market can lead to a profitable outcome.
⚙️ How the Recovery Mechanism Works
Let’s look at a simple example:
- You open a Buy trade (0.01 lot) with a Take Profit = 300 points and a Recovery Gap = 200 points.
- Instead of placing a Stop Loss, the assistant sets a Sell pending order 200 points below your entry to hedge the position if price moves down.
Now two outcomes are possible:
- Price Moves Up → The Take Profit is reached, and the trade closes in profit.
- Price Moves Down → The pending Sell order activates (hedge position opens). A new Take Profit level is calculated for both trades, ensuring that when price returns within the recovery zone, both positions close with a combined profit.
This process continues automatically with each change in market direction — building a chain of hedged trades that collectively close only when the total result is positive.
💡 Why It WorksThe Zone Recovery system replaces Stop Losses with dynamic hedging logic. Instead of taking a fixed loss, the assistant manages the exposure intelligently using lot multipliers and recovery distance calculations. Once price reaches either side of the defined zone, all trades are closed together in net profit — regardless of whether the market went up or down.
This makes AZ Trade Recovery Assistant ideal for volatile or choppy markets, where direction is uncertain but movement is guaranteed.
🌟 Key Benefits
- Always targets profit — no Stop Loss required.
- Converts losing trades into profitable outcomes automatically.
- Uses an advanced hedging algorithm (not simple martingale).
- Includes built-in trade management: Take Profit, Trailing Stop, and Break Even functions.
- Optimized for low-spread, low-slippage brokers.
⚠️ Important Notes for Best Results
- Avoid sideways or flat markets — use during active trading sessions.
- Choose a trending or volatile market for the initial trade.
- Set recovery distance and lot sizes carefully to prevent margin exhaustion.
- Use a broker that supports hedging and offers tight spreads.
- Always test your configuration in the Strategy Tester before going live.
2. Key Definitions
Understanding these key terms will help you operate the AZ Trade Recovery more efficiently and make sense of how the recovery logic functions during a trading cycle.
🟩 Initial Trade: The initial trade is the very first order placed by the trader or through the panel. Its outcome — profit or loss — determines whether the Zone Recovery Hedging mechanism will be activated. Until recovery begins, this phase is referred to as the Initial Mode.
🟦 Grid Trade: If Grid Trading is enabled and the initial position moves into loss, the assistant will first attempt to compensate using a series of grid orders placed at predefined intervals. If this grid sequence cannot recover the drawdown, the system will automatically transition to the Zone Recovery phase to restore profitability.
🟧 Hedge Trade: A Hedge Trade (also called a Recovery Trade) is an opposite-direction order opened by the assistant to neutralize the loss from an existing position. For example, if there is an open BUY, the system places a SELL at a calculated distance and with an adjusted lot size to create a recovery zone.
🟨 Hedge Mode: Once the first recovery (hedge) order is triggered, the assistant switches to Hedge Mode. In this mode, all subsequent calculations — including recovery distance, lot sizing, and combined Take Profit — are controlled by the Zone Recovery algorithm.
🟪 Cycle: A Cycle refers to one complete trading sequence consisting of the initial trade, any grid trades, and the hedge (recovery) trades. Each cycle ends only when all open positions are closed together in net profit, completing the recovery process.
1. INITIAL TRADE TYPE
The Initial Trade Settings section defines how and when the first trade of a recovery cycle is opened. AZ Trade Recovery EA is designed to be flexible — it can work as manual, semi-automatic, or fully automatic, depending entirely on what you select in Initial Trade Type.
Initial Trade Type
This setting determines the source of the first trade that starts a recovery cycle.
External Manual Trade
Use this option if you prefer to open trades manually.
- Attach AZ Trade Recovery EA to the chart.
- Set Initial Trade Type = External Manual Trade.
- Open one Buy or Sell trade manually using the MT5 terminal or mobile app.
- Once the trade is detected, the EA automatically manages it using recovery logic.
⚠️ Important:
- By default, one instance of AZ Trade Recovery EA manages only one initial trade at a time per chart. Please Read IMPORTANT NOTE.
External EA Trade
Choose this option if another EA opens trades and you want AZ Trade Recovery EA to manage recovery.
- Attach AZ Trade Recovery EA and your signal EA on the same symbol.
- Set Initial Trade Type = External EA Trade.
- The EA will monitor trades opened by the external EA and take control once detected.
⚠️ Important:
- By default, one instance of AZ Trade Recovery EA manages only one initial trade at a time per chart. Please Read IMPORTANT NOTE.
Auto Trading
In this mode, AZ Trade Recovery EA opens the initial trade automatically based on built-in strategies.
Available internal strategies include:
- Bollinger Bands
- Moving Average
- RSI
- Heiken Ashi
- Breakout Strategy
- ADX
- Ichimoku
- Pivot Levels
- Fast Movement Detection
You can enable multiple strategies at the same time to create a custom entry logic. This mode is ideal for traders who want a fully automated recovery system.
Read More Details
Instant Order
Select this option to let the EA open a trade immediately.
- Set Initial Trade Type = Instant Order
- Choose Buy or Sell from Initial Trade Direction
- The EA opens the trade instantly and manages recovery if needed
Trade Panel
When selected, the EA displays a lightweight trade panel on the chart.
Using the panel you can:
- Open Buy / Sell trades
- Place Pending Orders
- Set TakeProfit values
- Monitor active recovery cycles
- This mode is best for manual traders who want visual control with automatic recovery.
Button (For Simulator Backtest)
This option is designed for visual backtesting.
- Displays Buy and Sell buttons on the chart
- Allows you to manually open trades while Strategy Tester is running
- Useful for testing recovery behavior interactively
Important Rule for All Initial Trade Types
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Each AZ Trade Recovery EA instance can manage only one initial trade at a time per chart.
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This rule applies regardless of how the initial trade is opened:
- Manual trade
- External EA trade
- Auto trading
- Trade Panel
- Button (Visual Backtest)
- Instant order
- If multiple initial trades are opened on the same chart, the EA will not manage them correctly.
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To manage multiple initial trades on the same symbol, you must:
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Attach the EA to multiple charts of the same symbol, and
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Use a different Magic Number / Unique Number for each EA instance.
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Running multiple EA instances on the same symbol with the same Magic Number may cause trade interference and unexpected behavior.
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Once recovery starts, the EA fully controls the active trade cycle until it is closed by profit or loss policy.
📌 Note:
For traders who want to manage multiple initial trades from a single chart, use AZ Trade Recovery Assistant, which is designed specifically for multi-trade panel-based management.
Initial Trade Direction
Defines which type of trade the EA is allowed to open.
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Any Trade (Buy or Sell): EA can open Buy or Sell trades based on signals.
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Buy Only: EA opens Buy trades only.
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Sell Only: EA opens Sell trades only.
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Pending Orders: Buy Stop, Sell Stop, Buy Limit, Sell Limit can be selected.
This setting applies to When your initial Trade Type = Auto Trading, Instant Order modes.
Pending Order Price Type
This option defines how the price of a pending order is calculated.
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This setting is used only when:
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Initial Trade Type is set to Auto Trading or Instant Order, and
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Initial Trade Direction is set to a Pending Order type
(Buy Stop, Sell Stop, Buy Limit, or Sell Limit).
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If the Initial Trade Direction is Buy or Sell (Market order), this option is ignored.
Pending Order Price Value
This value specifies where the pending order will be placed.
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This setting becomes active only when:
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A Pending Order direction is selected.
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The meaning of this value depends on Pending Order Price Type:
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Fix Price → Enter the exact price level (example: 1.2000 )
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Distance in Points → Enter the distance in points from the current price (example: 100 )
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📌 Note:
If a market order (Buy/Sell) is selected, both Pending Order Price Type and Pending Order Price Value are ignored.
Continuous Initial Trade
When enabled, the EA automatically opens a new initial trade after a recovery cycle finishes in profit.
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True → EA keeps trading continuously
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False → EA opens only one cycle and stops
📌 Works only when:
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Initial Trade Type = Auto Trading or Instant Order
Stop Open Initial Trade
When enabled, the EA stops opening new initial trades, but continues managing existing recovery cycles.
Useful when you want to pause new entries without stopping recovery.
📌 Works only when:
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Initial Trade Type = Auto Trading or Instant Order
Reverse Signals (For Auto Trading)
Available only in Initial Trade Type = Auto Trading mode.
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When enabled, all internal trading signals are reversed.
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Example: Buy signals become Sell signals, and vice versa.
Max Spreads (For Auto Trading)
Defines the maximum allowed spread for auto entries.
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0 = Disabled
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EA skips entries if current spread exceeds this value
Remove Hard TP/SL From Initial Trade
When enabled, the EA removes any fixed TakeProfit or StopLoss from the initial trade.
Recommended when:
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Trades are opened by external EAs
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Manual trades include hard SL/TP
The recovery system works best without fixed SL/TP.
Delete All Pending Orders When Initial Trade Active
If enabled, the EA deletes all other pending orders once one pending order becomes active.
Useful for manual and panel-based trading.
Number of Loop Trade (0 = Disabled)
Allows the EA to re-enter trades automatically after a profitable recovery cycle.
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EA reopens trades in the same direction where TP was hit
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Loop continues until the specified number is reached
Loop resets when:
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Loop count is completed
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Trade is closed by loss policy
Initial Lots Settings
This section applies when:
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Initial Trade Type = Auto Trading
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Initial Trade Type = Instant Order
Initial Lots Type
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Fixed Lotsize – Always uses the same lot size
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Lots Based on XBalance – Lot size increases as balance grows
XBalance & LotsizePerXBalance
Lot calculation formula:
Example:
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Balance = 300
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XBalance = 300
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LotsizePerXBalance = 0.01
→ Lot size = 0.01
Initial Lots
Defines the lot size for the initial trade.
📌 Note:
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When using External Manual Trade or External EA Trade, the EA automatically reads the lot size from the active trade.
Initial TakeProfit Settings
This section applies when:
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Initial Trade Type = Auto Trading
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Initial Trade Type = Instant Order
TakeProfit Type For Initial
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In Points (Fix Distance) – Fixed distance from entry price
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In Currency – Fixed profit amount in account currency
TakeProfit For Initial (Points/Currency)
Defines the TP value based on the selected TP type.
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0 = No TakeProfit (recovery only)
14. DISPLAY
