Recovery factor can be different meaning for each system statisitic.
as far as I know , recovery factor is to determine if trading system profitable-safe or not.
for example: last equity = $1000 ...... and then came loss 20%, equity change into $800 ... next, equity increase again into $1100.
so, recovery factor is condition where loss change into profit.... but it also depends on how much risk in every trade.and it's very important especially to choose Signal Provider.
I was advised by one of the EA developers to aim for a recovery factor of 7 or greater, I assume that he has done a lot of work on this type of thing as his products are quite reliable.
I wonder what others use as a benchmark.