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Automatic Loss Recovery System (ALR) - read this first
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Author:  Dewey McG [ Sun Jul 26, 2015 4:59 am ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
tradingshed » Sat Jul 25, 2015 6:31 pm wrote:Hi all,

fascinating thread and thank you to all for the info.

My question is: Does anyone has a functional & working ALR system that they are willing to post?

Thank you!
Sheesh. This forum is not that hard to navigate. A system with an EA using ALR with a few months of forward testing is posted very close by. Hint--look at my signature for more clues.
Author:  tradingshed [ Sun Aug 16, 2015 2:26 pm ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
Thank you Dewey, I have found my way round it now :-)

I am looking for a tool to manage a runaway trade created by martingale ea's. At the point of intervention, the trade would probably look something like this:
Short 0.1
Short 0.1
Short 0.1
Short 0.3
Short 0.6
Long 0.1

with the oldest short trade being around -250 pips by this point.

What I would like to achieve is that, if my analysis points to a continuing trend (in this case a bullish trend), and I am not confident in the EA ability to conclude a successful trade, I could deploy an ALR to manage the trade from this point onwards, rather than rely on the EA itself or continuous manual intervention.

The ALR would need to take control of all of the open trades and manage them to BE or hopefully profit!

By looking at the various options on the board, they all seem to be pointing to single losing trade management, rather than basket of trades. All suggestions appreciated !

Thanks to all for contributors for this excellent forum.
Author:  ernest02 [ Fri Aug 21, 2015 1:04 pm ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
This is my take on this loss recovery approach. It uses up your free margin too quickly and you may sit in one or more trades hoping for a BE for days on end. This keeps you from many good trades that you could have taken while this is happening. So I will rather take my calculated loss immediately and recover that and more with some good profitable trades while others sit trapped in a long stressful cycle of martingale style trades and praying for a BE. The eventual profit is small because you have to start with a tiny lot size to make provision for any loss recovery trades. The price I have to pay just to have a couple of trades end up in BE or small profit is just too high for me.

Sorry to be so negative about this loss recovery approach. Please prove me wrong!
Author:  Analyzer [ Thu Nov 05, 2015 4:16 pm ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
I have read all the messages related to the Automated Loss Recovery or 'Zone Recovery' systems in this thread.

You have totally misunderstood Joseph Nemeth, and your application of his ZR is incorrect.

The reason for this is that you have assumed a 'one size fits all' policy of trading this system, and focused too much on the 150 pip TP and 200 pip SL. He used these as 'examples' for the particular illustration. For the present, what you need to understand is this:

1 - When using what Joseph Nemeth calls 'Zone Recovery' - let's call it ZR, you need to also take into account the financial size of your account, your position size relative to your account size, and MOST importantly the instrument you are trading. You have failed using this system effectively because like so many others, you have probably used it to trade instruments that do not fit well to this type of trading, and/or your position size has been incorrect relative to your account size. Forget the fancy maths behind it. The genius of the system is in its simplicity, so do not complicate any further by trying to 'fine tune' the general idea with algorithms.

You can fine tune the TP and SL levels, review your position size, and pick the right instruments to trade that would suit this type of ALR system. Furthermore, ALR is only 'employed' once all your analysis and positions have worked against you. It is not in itself a way to trade the markets. It is a last resort, not your first port of call. By the time you have implemented your trades correctly, and if all else has failed, then it is time to use the ZR, and when you do so, you'll not need to see more than 3 or 4 turns before closing with a slight profit.
Author:  nonlinear [ Tue Nov 10, 2015 5:31 pm ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
you need to also take into account the financial size of your account, your position size relative to your account size, and MOST importantly the instrument you are trading
Analyzer, welcome to the forum. You seem to have some experience with this type of recovery system. Some others have analyzed the points you raise in other threads, but if you have any suggestions on the above, particularly on instruments, myself and likely others would welcome your input.
Author:  nonlinear [ Wed Nov 11, 2015 5:00 pm ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
For those that are using ALR, I think there is merit to carefully choosing the pair or pairs that one uses ALR on (assuming you have a base strategy that works on different pairs). From my perspective, if one is running ALR on, for example, daily systems, we want to avoid sideways movement by using ALR on pairs that do run hundreds of pips in a given direction. To me, this means that I might decide to run my core strategy on a different pair each week or after a series of ALR trades closes. What I have been thinking is pulling up daily charts, loading up ATR (say 30), and picking a pair for my base strategy with an ATR well over 100, for example. For example, this might lead me to trade EA right now (ATR around 180) instead of EU (ATR sitting around 100). The point is that using ALR on EA might be safer than EU in the near future. Or maybe we want pairs with rising ATR? I know ATR lags but I'm just looking for pairs that have been moving recently. Anyone have thoughts on this?
Author:  billv [ Thu Mar 17, 2016 5:24 am ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
Hi guys

Great tool this EA but it takes too long to recover a trade and I get caught out when the market is range-bound.
Therefore, I want to have the option to do manual recovery when the circumstances allow it.

In order to recover my losing trades manually I will need the lot multiplier in the EA to be removed so that the 1st pending trade is of equal lot size to my manual trade and I end up with a 100% hedged position

Can someone please help me out by telling me how to remove the lot size multiplication in the EA? I want the 1st pending order to be of equal size to my manual trade.

There won't be additional pending orders because I will limit the number of levels to 1.
Many thanks in advance.

Cheers
Bill
Author:  pascalx [ Fri Apr 01, 2016 9:29 am ]
Post subject:  Automatic Loss Recovery System (ALR)
madpipa » Tue Jul 08, 2014 5:32 am wrote:I have run a test over a short dataset - EURNZD from 26/09/13 - 16/10/13.


The reason I isolated this small dataset is that it has 2 consecutive sets of trades that both reach the MaxOrders = 10. The screenshot shows the 2 possibilities if trades are left to reach either the upper or lower TakeProfit level. If you are lucky it reaches about breakeven. If unlucky it loses $1,200.
Big difference.
The formula you use is not correct. The down lot size is too large.
Author:  pascalx [ Sat Apr 02, 2016 7:22 pm ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
Dewey McG » Tue Aug 19, 2014 1:51 am wrote:I will make a new document later explaining the differences.

ALR 1 (the calculator says 2.1) is the first version of ALR based on what Joseph Nemeth developed and later copied (and marketed everywhere) by Dustin Pass. With that one the lots are larger and you are keeping the trades open. Since you are hedging it won't work with US brokers.

ALR II is a version developed by Spider and a friend of his. With this one you close the trade and open a new one, so it is compliant with US brokers. it works in a very similar way, but is able to use smaller lot sizes and much less risk. After doing some back tests (see above) you can see the difference in risk is dramatic.

Going forward I believe we should stick with ALR II.
Hi. I am wondering what the difference between the ALR 2.1 and ALR II is. I have downloaded both files on first page but the formulas are identical and the lot sizes are also almost Identical. What am I missing here?
Author:  bentonp [ Wed Nov 23, 2016 3:41 pm ]
Post subject:  Automatic Loss Recovery System (ALR) - read this first
Hello,

I just wanted to know if there are anyone available for testing / fixing my version of ALR, based in the second version that closes each trade. I just modify the code to be an MQH so I can include in any of my EAs.

Anyone interested?

Regards,

Benton :geek:
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