Zone-Recovery Bot¶
Strategy Example - Not Investment Advice
This bot configuration is provided as an educational example to demonstrate software capabilities. It does not constitute investment advice, a trading recommendation, or an endorsed strategy. Users must independently evaluate, test, and customize this configuration before deployment. You are solely responsible for all trading decisions and outcomes. See Legal Disclaimers for complete terms.
About¶
The Zone Recovery Bot is designed to take a position (long or short), set a take-profit level (exit level), and set a take-counter-position level. The strategy aims to reach the take-profit level. However, when price moves in the opposite direction, the take-counter-position level will be triggered. This means if the bot went long initially, it will open a larger short position. This larger position is intended to compensate for losses from the first position. The bot re-calculates new take-profit and take-counter-position levels and the process repeats until the maximum exposure limit is reached, at which point losses must be realized as no additional positions can be opened.
Risk Warning
This strategy uses position averaging which can result in significant losses during extended market trends. When maximum exposure is reached, all accumulated losses must be realized. This is not a risk-free strategy and can result in substantial capital loss.
We have 2 versions of Zone-Recovery Bots listed in the TradeServer. There is a full-hedge mode version and a non-hedge version. The operational difference is small, but the difference is that the full hedge mode bot keeps the long and short positions both open if it takes a new position. They get closed when the strategy reaches its profit target. The non-hedge version closes the earlier position before opening a new position. This bot will only be long or short, not both.
Position Sizing Critical
Set conservative maximum exposure limits. Extended market trends in one direction will cause position sizes to grow exponentially and can lead to maximum exposure being reached, forcing realization of all losses.
Strategy Behavior¶
This strategy is designed for ranging or mean-reverting markets. Extended directional market trends will cause position sizes to compound rapidly and may result in significant losses when maximum exposure is reached.
Screenshot of the chart which the Zone-Recovery Bot creates
Script Settings¶
Minimum exposure¶
The amount which the bot uses for its first opening position. Set this up with a low value to be able to take enough counter positions.
Maximum exposure¶
The maximum amount the bot will expose itself to the market. Set this up with the maximum of contracts you allow this bot to open.
Trade amount factor¶
The multiplier used for taking the bigger counter position. (this is normally set to 2)
Percentage profits¶
The target percentage profits. (this is normally set to 0.2%)
Zone factor¶
The multiplier used to calculate the take-counter-position level. (this is normally set to 1)
Tips and tricks¶
Just like all other built-in bots is this bot is free and open-source. So, if you like, you can take the source and improve upon it.