Dislikednanningbob, if i understand this correctly, it seems that recovery EA is very expensive to use. The DD requirement for recovery EA is many times the original EA. In order to use the recovery EA, we will need to reduce the lot size for the original EA and make less money on the original EA. Unless, the recovery EA itself is used very often, it's not worth using the recovery EA becoz it takes too much margin requirement ?
If the recovery EA is used very often, it's not longer a "recovery" EA but part of the original system ?Ignored
If you use the 4Level system it goes .01, .03, .09, .27 and then the 5th of the recovery is .32 or .72 cents per pip. You are now 450 pips from your first entry. If you havent changed your stop loss you are only 50 pips from there. So once again, it is a loss but no where near account wipe outs like other multiple entry systems. This is where martingales have failed in the past. A way to walk from disaster. I have lessoned a bad trade to swallow able loss.
Post #3 shows right in the middle a 500 SL hit. Only took out some of my profit but we went right back on track again. That is also the same account I had trouble with getting my TP in the GBP/NZD trade with IBFX. My recovery EA came in at level 5 and I rescued a bad situation down to a 6.00 loss. Remember you dont have to take the recovery EA to its TP just enough to lessen your loss. That is what its there for. Make losses smaller. We cant profit from every trade, be nice but not feasible. This is not a 100% win system. There is account and money management to be learned.
This is so superior than anything we have had before. It will take some practice on a demo to get used to it though. In post #13 I showed a long term slide. Those trades, I have been closing at a loss on a retrace around the third reentry rather than taking the recovery EA. You can see my profit line in post #3 is herky jerky. That is why, I close those trades out when I see the multiple day slide like that. Much cheaper and less risky than the extra level. But if price is spiking and breaking the yellow line or third line I take the recovery EA and use it. What goes up quickly, comes down quickly. The long several day slides are the tricky ones.
That is what I have learned so far. Even if I have to take a loss, my eur/gbp trade i kept over the weekend is one for example, I am nowhere in a position to get my account cleaned out. You shouldnt be taking any hits over 10-15% on a 500-1000 dollar account. Much less on a bigger account. This is the beauty of this. The only way you get wiped is you just wont close the trade because of pride or greed.
The recovery EA is set at .02 and at -500 pips, it is only at -114.40. We dont like losses like that but that is a swallowable loss.
