Money recovery in automated trading: how it works and what it costs
An honest look at money recovery: how the next trade is sized to win back a loss, why it raises returns in good periods, and why it makes losing runs deeper.
Money recovery is one of the settings in Arrissa REX 9 AI. It is switched on by default, and it is worth understanding before you leave it that way.
How it works
After a losing trade, the next trade on the same market is made larger, so that if it reaches its target it wins back the loss on top of its normal profit. Each market keeps its own running total. Once the loss is recovered, the size goes back to normal.
Why traders like it
A strategy that wins more often than it loses, or wins more when it wins, turns many small setbacks into recovered ones. In good periods the account curve looks smoother.
What it costs
- Trades after losses are bigger, sometimes many times the base size.
- A long losing run on one market produces larger positions and larger losses than the same run without recovery.
- Bigger trades need more margin. On a low leverage account, or around news when brokers raise margin, a recovery trade can be refused by the broker.
In our own tests, once realistic execution costs were added, money recovery made the deepest dip several times larger than with fixed lots, while the profit was about the same. That is why the app lets you switch it off.
Start the bot, watch your free $10,000 demo trade, and connect your Exness account when you are ready.
Our suggestion
If you are new, try the demo account first and compare. You can switch money recovery on or off for each account in the app.
Risk warning. Trading leveraged products such as CFDs carries a high risk of losing money. Backtest figures are simulations, not real results, and past performance does not guarantee future results. Read the risk disclosure before you connect an account. Nothing here is financial advice.