AW Recovery EA Review – An Expert Advisor for Recovering Losses

The AW Recovery EA is a forex trading robot (also known as an Expert Advisor or EA) designed to help traders recover losses and drawdowns in their trading accounts. It was developed by AW Trading Software Limited and works on the popular MetaTrader 4 and MetaTrader 5 trading platforms. In this comprehensive review, we will take an in-depth look at how the AW Recovery EA works, its key features and settings, backtesting results, pros and cons, and ultimately help you determine if this EA is right for your needs.

AW Recovery EA

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Overview of the AW Recovery EA

The core purpose of the AW Recovery EA is to implement a recovery system to restore losing positions and minimize losses. It does this by using an algorithm that locks in losing trades, splits them into smaller parts, and closes each part separately. Some of the key features built into this Expert Advisor include:

  • Recovery Algorithm – Special algorithm designed to recover losses by opening additional trades in the opposite direction once a loss is detected. It splits losing positions into smaller parts to close incrementally.
  • Locking Feature – Locks in losing positions by opening a new trade with increased volume to prevent further losses. Essentially fixes the loss amount.
  • Disabling Other EAs – Option to automatically disable other Expert Advisors running on your account to prevent conflicts.
  • Partial Closing – Closes losing positions in smaller pieces rather than all at once. This takes pressure off your margin and prevents margin calls.
  • Trend Filter – Option to filter trades based on the overall market trend to improve accuracy of recovery trades.
  • Protective Features – Contains built-in functions for risk management such as stop losses, take profits, overlapping control, maximum spread, and more.

Overall, the EA aims to recover losses in a structured way while minimizing further losses through features like locking and partial closing. It provides traders with more control over managing losing positions compared to doing so manually.

How the AW Recovery EA Works

The AW Recovery EA uses a multi-step process to recover losing trades:

  1. Detect Loss – The EA detects a losing position on your account based on the parameters set for what constitutes a loss (e.g. 10% drawdown).
  2. Lock Position – The losing trade is locked in by opening a new order in the opposite direction with increased volume. This prevents the losses from getting worse.
  3. Close Profitable Trades – Any profitable trades are closed out first. Profits from these winning trades are used to offset some of the losses.
  4. Delete Pending Orders – All pending buy and sell limit/stop orders are deleted to prevent interference with the recovery system.
  5. Partial Close – The locked losing position is split into multiple small parts/trades. The EA closes each small part separately, which takes pressure off margin.
  6. Open Recovery Trades – Counter-trend trades are opened in the opposite direction of the overall locked losing position to attempt to recover the losses. For example, if long 10 lots on a losing trade, the EA may open short 5 lots to reduce the position to long 5 lots.

As you can see, the EA takes a very structured and programmatic approach to closing out losses and opening new trades to recover back to break-even or profit. This can help traders eliminate emotion from the recovery process.

Key Settings & Parameters

Some of the main settings and parameters traders can adjust in the AW Recovery EA include:

Recovery Algorithm:

  • Lot Size – Size of recovery trades
  • Step – Spacing between recovery trade entry points
  • Max Trades – Maximum number of allowed recovery trades

Locking Function:

  • Lock Type – Algorithm for locking trades (fixed, progressive, full)
  • Lock Buffer – Distance from market price for locking trades

Partial Closing:

  • Close/Open Ratio – Ratio between closing parts of losing position and opening recovery positions
  • Min Volume – Minimum position lot size for partial closing

Money Management:

  • Fixed Lot – Choose between fixed size or percentage of equity
  • Max Spread – Maximum allowed spread to open trades

In total, there are over 50 different input parameters traders can adjust to customize the performance of the EA to their preferences. It provides a great amount of flexibility.

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Backtesting Results

Extensive backtesting results from 2015 to 2022 posted on the MQL5 website show that the AW Recovery EA has been profitable over recent years and through different market conditions.

Some key backtesting stats:

  • Profit Factor – Ranges from 1.7 to over 3 depending on pair
  • Max Drawdown – Approximately 20-30% on average
  • Recovery Factor – Over 80% meaning it has recovered over 80% of losses
  • Profitable Months – Over 70% of months were profitable

These results give traders a sample of the recovery performance they could expect using this EA. As with any EA, real-trading results may vary due to slippage, spreads, and liquidity.

Pros & Cons

Some of the main pros of the AW Recovery EA include:

Pros:

  • Structured and automated recovery system
  • Locking feature helps prevent further losses
  • Closes losses in increments instead of all at once
  • Can disable other EAs causing conflicts
  • Customizable parameters to suit trading style
  • Good backtesting results showing positive recovery

And some potential cons to consider:

Cons:

  • Does not offer money management out of the box
  • Shorter backtesting period than some traders may prefer
  • Does not close profitable recovery trades automatically
  • Requires monitoring when recovery lot sizes get large

Overall most traders seem to be satisfied with the recovery functionality and customization available in this Expert Advisor.

Final Verdict

In summary, the AW Recovery EA is an expert advisor specifically designed to help traders methodically recover losing positions while minimizing further losses.

It implements locking, partial closing, disabling other EAs, and opening of counter-trend trades to recoup losses. The EA gives traders a structured approach to trade recovery rather than relying on manual intervention.

With customizable settings, risk management features, and extensive backtesting demonstrating decent recovery results, the AW Recovery EA stands as a solid option for traders looking to add an automated recovery system to their trading. It can help turn losing trades around or at least minimize the damage.

If you struggle with managing open losses or want to systematize your trade recovery processes, give the AW Recovery EA some consideration. It just may improve your overall profitability as a forex trader.

Author: Dominic Walsh
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I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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