How to recovering deep drawdowns in forex


I took the dumb strategy based on candles high / low breakout. Without any trend filtering and daily targets also it going only in long direction :facepalm.

So how to use smart money management for recovering from deep drawdowns even your trading strategy is sucks.

The picture showing you how it's performing last two years from initial deposit $2000 to the south direction.

projectreaper forex recovery system off

Going slowly only because I've set tight stop loss, without it's would be very quick. Take profit here equals $1 for 0.01 lot size.

We have here eurusd pair and H1 timeframe.

What should I do now for cover the losses and to try not lose so much at least.

  1. First I going to EA settings and enable PBM module [take profit by magic numbers] and placing 1 bucks but take profit level will apply for all opened orders at once.
  2. The next thing I should to do is activation Ghostbalance money management algorithm it allows the EA do not forget loosing trades and saving current trading statistics. So it does strategic targeting instead current trading situation.
  3. And the last but very important thing I turning on ForexKiller module with 10 pip take and 10 pip stop-loss calculation. Physical stop loss here equals 0.5 ATR so it's adjusting to market situation on a chart.

And finally starting backtest.

projectreaper forex recovery system

So now you can see how it working.

It's crazy to trade with the strategy – consistant 20% win rate and small takes will kill any account it's just depens on lot size and money on your trading account. 

But I want to point you on one important thing 

Even 20% winning trades it 's enougth to change any two years loosing results to positive values, if you can trade around 50% win rate you no need any recover technicals just working on risk / reward ratio for each trade. This methods you can use for profit boosting with initial risk level, next time about it. Just think out of box and learning mistakes.

Stay in tune.

If you need help

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