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In short
Zone recovery puts a zone of fixed width around the first entry. If price falls to its lower edge, the program opens a sell with a larger lot. If it climbs back to the upper edge, a buy with an even larger lot. And so on.
The lots are calculated so that the basket is positive as soon as price leaves the zone far enough, in either direction. How expensive that gets depends on how often price swings inside the zone first.
The strategy as a schematic
A drawn price path, no market data. First the case where the rule works, then the same routine when it fails.
- Closed
- ±0 pips
- Open
- –
- Open volume
- –
Schematic, no market data: a drawn price path, results in pips weighted to 0.10 lots. Not a backtest and no statement about any real EA.
How the strategy trades
- Open a first position; below (or above) it lies a zone of fixed width.
- When price reaches the other edge of the zone, open an opposite position with a larger lot.
- The lot is calculated so that the whole basket is positive at the next exit.
- If price returns to the first edge, open the first direction again with an even larger lot.
- When price leaves the zone by the target distance, all positions close. At the last step the basket closes at a loss.
Where the risk sits
There is no stop per position. The risk is the lot progression: every turn inside the zone needs a larger position than the one before, and the total grows by roughly a factor of 1.5 per step.
A won basket earns a small, fixed amount. A broken basket loses a multiple of that, because the largest volume is open at that moment.
Zone recovery needs a move out of the zone. A market that swings exactly within the zone width is the worst case.
When it works, when it fails
Tends to work when …
- Price leaves the zone after a few turns with a clear move.
- Zone and target distance are large relative to the noise.
- Enough margin for the highest steps.
Tends to fail when …
- Swinging inside the zone over many turns.
- Spread and slippage at the zone edges that make every step more expensive.
- Lot limits or margin that prevent a step before the sums work out.
How to recognise it in an EA
Traces in the trade log of a live account, whatever the vendor calls the EA.
- Alternating buy and sell positions at exactly two price levels.
- Lots grow from position to position, but not in a clean ×2 sequence.
- All positions of a basket close in the same second.
- Volume open in both directions at once, a multiple of the start lot.
Typical settings
| Setting | Typical | Effect |
|---|---|---|
| Zone width | 10–50 pips | Narrower = more turns. |
| Target distance | 1–2× the zone width | Further = larger lots needed. |
| Lot calculation | from a profit target or a fixed factor | Sets how fast the volume grows. |
| Max. steps | 5–10 | After that the basket closes at a loss. |
Common ranges from EA manuals and set files, not a recommendation.
EAs in our tests built this way
No EA in our tests is explicitly tagged with this design yet. Many EAs combine it with other mechanics; the trade log usually shows it sooner than the product description. All EA reviews →
Related strategies
- HedgingLocks a losing position with an opposite one and freezes the loss instead of closing it.
- MartingaleDoubles the lot after every loss so that one win recovers all earlier losses.
- DCA (Cost-Averaging)Buys the same amount at fixed time intervals, wherever price is, and so lowers the average entry price.
All strategies →All designs compared: EA strategies explained →
Frequently asked questions
Is zone recovery a hedging strategy?
Why do the lots grow so fast?
How do I recognise zone recovery in a trade log?
Video: the strategy in under a minute
The same animation as a video with subtitles, for those who prefer to watch.