Zone Recovery is not a strategy, but rather a money-management method. This method makes sense to use in combination with range exit strategies.

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Check out the new article: Developing Zone Recovery Martingale strategy in MQL5.
The article discusses, in a detailed perspective, the steps that need to be implemented towards the creation of an expert advisor based on the Zone Recovery trading algorithm. This helps automate the system saving time for algotraders.
Based on a market analysis, the zone recovery trading method starts with the opening of an initial position. Imagine a trader who opens a buy position because they believe the market will rise. Making money from the increasing trend is the first goal. The trader closes the position and secures the gains if the market moves positively and the price rises to a predetermined profit objective. The trader can profit from favorable market movements with this simple strategy without having to use any more intricate ones.
On the other hand, the zone recovery method initiates its loss mitigation mechanism if the market moves against the initial purchase position and hits a predetermined loss point. At this point, the trader opens a sell position with a larger lot size, usually double the size of the previous purchase position (x2), rather than closing the buy position at a loss. By offsetting the losses from the first trade with the possible gains from the new position, this counter trade seeks to establish a hedge. Using the market's inherent oscillation, the strategy anticipates a reversal or at the very least a stabilization within a given range.
The trader keeps an eye on the fresh sell position as the market moves forward. The combined impact of the initial purchase and larger sell positions ideally results in a breakeven or profit situation if the market continues to decrease and reaches another predetermined point. After then, the trader can close both positions, using the winnings from the larger following trade to offset the losses from the first trade. In order to guarantee that the entire position may be closed profitably within the recovery zone, this strategy necessitates exact computation and timing.
Author: Kikkih25