Understanding this loss recovery egy
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Thread: Understanding this loss recovery egy

  1. #1
    Swingman explained this reduction recovery egy to me and that I still have a hard time understanding it. Initially I thought that I get it. But then... Can you guys know it?

    Let's see an example:
    Price is 1,550
    RecoveryZone = 50 and ExitZone = 150

    1. I place Market Buy = 1.550 with SL = 1.500 and TP = 1.700 (1 lot, as in Excel Sheet)

    2. I place a Pending Economy = 1.500 with SL = 1.550 and TP = 1.350 (0.40 lots)
    If order 1. Doesn't reach TP and is still a reduction, but market is a triumph, I have
    from 1. -50 * 1 = -50 and
    from two. 150 * 0.40 = 60.
    Total = 10

    3. After the sell order starts, I place a pending buy as for order 1 (with 0.53 lots).
    If Economy 2 is a reduction, starts the buy order 3.
    When he wins, we now got two losses from 1 and 2 (-50-20 = -70) plus a win from 3 ( 150 * 0.53 = 80)
    Total = 10
    https://www.forexforum.co.za/attachm...567646944.xlsx

  2. #2
    If your stop loss on the BUY is 1.500 along with the SELL is 1.550 and you're buying at 1.550 and selling at 1.500, what happens when the price goes back and forth between 1.550 and 1.500 many times? Wouldn't you just keep losing money and hitting on the stop loss?

    I would think that could be the situation and if that's the case, the spreadsheet does not create as much sense, but perhaps I'm missing it? I guess his premise is that eventually the market begins to move in 1 direction?

  3. #3
    Quote Originally Posted by ;
    In case your stop loss on the BUY is 1.500 and the SELL is 1.550 and now you're buying at 1.550 and selling at 1.500, what happens when the price goes back and forth between 1.550 and 1.500 several times? Would not you just keep losing money and hitting on the stop loss? I'd think that could be the situation and if that's the case, the spreadsheet doesn't create as much sense, but I'm missing it? I suppose his premise is that the market starts to move in one direction?
    You'd really begin losing money, but as you increase the lot size (Martingale) you will recover all losses finally if the market moves into the right.

    The explanation above does nevertheless not correspond with the excel sheet. That's my confusion. Or I miss something here.

  4. #4
    What you missed is only to change the lot size to 1 or any other value you desire, rather than the 0.8 lot that it seem like the default in the glow.

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