RecoveryGridEA v4: Detailed Overview

What It Is

• Automated Trading System: Expert Advisor (EA) for MetaTrader 4 platform
• Strategy Type: Grid trading with recovery mechanism
• Version: 4.0 (Latest stable release)
• Developer: Ahmad Dahalan
• Purpose: Designed to test and analyze grid trading as an alternative to traditional martingale strategies

Development Purpose

• Risk Assessment: Study drawdown sustainability with a $500 account
• Performance Testing: Measure daily profit potential while maintaining <50% drawdown
• Session Analysis: Evaluate strategy effectiveness across different market sessions:
  • Asian Open/Close
  • London Open/Close
  • New York Open/Close
  • Overlapping sessions
• Stopout Analysis: Determine maximum sustainable drawdown before account stopout

Trading Setup & Configuration

Core Trading Parameters

Setting	Default	Range	Description
Initial Lot Size	0.01	0.01-100	Starting position size in lots
Grid Spacing	200 pts	10-1000	Distance between grid levels in points
Lot Multiplier	2.0x	1.1-5.0x	How much each subsequent position increases
Max Trades	8	1-20	Maximum number of concurrent positions
Take Profit	$2.00	$0.10-$1000	Profit target to close all positions

Trading Schedule Options

• Predefined Sessions:
  • London Open/Close
  • New York Open/Close
  • Tokyo Open/Close
  • Sydney Open/Close
• Custom Hours: Set specific trading times
• Friday Close: Optional automatic position closure before weekend

Risk Management Features

Built-in Protections

• Spread Filter: Blocks trading if spread exceeds threshold (default: 30 points)
• Daily Loss Limit: Optional maximum daily drawdown protection
• Max Drawdown: Account-level risk control
• Max Cycle Trades: Limits number of trades per grid cycle
• Slippage Control: Configurable maximum acceptable slippage

Position Management

• Automatic lot sizing based on grid level
• Configurable trade direction (Auto/Always Buy/Always Sell)
• Option to use Moving Average for trade direction
• Visual indicators for open positions and grid levels

Monitoring & Display

On-Chart Indicators

• Profit/Loss Display: Real-time account performance
• Spread Monitor: Current and average spread values
• Max Lot Indicator: Shows largest position in current cycle
• Daily Separators: Visual markers for each trading day
• Trading Session Lines: Marks active trading periods

Performance Tracking

• Floating P&L monitoring
• Historical drawdown recording
• Trade cycle statistics
• Daily profit/loss calculation

How the Grid System Works

1. Initial Position:
   • Opens first trade based on selected direction
   • Can use MA crossover or fixed direction
2. Grid Placement:
   • Places pending orders above/below current price
   • Grid spacing determines order distances
   • Each level uses larger position size (multiplier)
3. Recovery Mechanism:
   • As price moves against positions, new trades are opened
   • Larger positions help recover losses when price reverses
   • All positions close when total profit target is reached
4. Cycle Management:
   • Tracks complete trade cycles
   • Records performance metrics
   • Can limit cycles per day

Testing Methodology

Account Parameters

• Starting Balance: $500
• Risk Parameters:
  • Max 50% drawdown ($250)
  • Daily loss limits
  • Position sizing relative to account balance

Testing Phases

1. Initial Testing:
   • Micro lots (0.01) only
   • Conservative grid spacing
   • Low risk settings
2. Session Analysis:
   • Compare performance across different market sessions
   • Identify most favorable trading times
   • Adjust parameters per session
3. Drawdown Testing:
   • Measure maximum sustainable drawdown
   • Calculate recovery rates
   • Determine optimal risk parameters

Technical Requirements

Platform

• MetaTrader 4 (Build 600+ recommended)
• Windows OS (7/8/10/11)
• Stable internet connection

Broker Requirements

• Low latency execution
• Competitive spreads
• No restrictions on:
  • Grid trading
  • Hedging
  • EA trading
  • News trading

Recommended Settings

• M15 or higher timeframes
• Major currency pairs
• Minimum account balance: $500

This EA is designed for traders who understand grid trading risks and want an automated solution with robust risk management features.

Result

Conclusion

Deposit = $500

Initial lot size 0.01

Multiplier = 2.0x

Drawdown too high