Loss Recovery Trader is a forex trading expert advisor script which tries to recover losing trades on behalf of the user. The expert advisor informs you in advance of how much risk you are exposed to so you do not rush to close profitable positions too early or let your account run dry by closing losing positions late. The script is written by Michalis Phylactou who hails from Cyprus. Mr. Phylactou has an extensive history of developing forex robots for the MetaTrader 4 platform. He has over 20+ completed projects in his portfolio.
Loss Recovery Trader runs on the desktop version of MetaTrader 4, so you would need either a desktop or laptop to take advantage of this software, mobile phones and tablets would not run it. There is also a Loss Recovery Trader for the lesser used MetaTrader 5 platform, but that has few reviews and very few users. The license for Loss Recovery Trader on the MetaTrader 4 platform costs $145, however, a free demo is available. Loss Recovery Trader is also available on the MetaTrader 5 platform at a cheaper price of $75.
Loss Recovery Trader’s strategy is said to rely on switching between buy and sell trades and gradually changing the exposure between long and short by partially hedging trades. This helps you know in advance how much risk you are willing to take. Here is a visual description of the algorithm:
From the above, when you place a trade and it moves in the opposite direction, the algorithm starts an alternating series of trades at two specific levels with two exit points. If any of the exit points are reached, the trades are closed in order to minimize your loss.
To Trust or Not to Trust?
This would have been a software to trust judging from the professional manner in which the product has been prepared and packaged. However, a few things that we unearthed about this software make us believe that this is a software not to trust. Here are reasons for this evaluation.
Performance
A look at the Myfxbook testing of the Loss Recovery Trader robot on a live account showed that it was not very effective at recovering losses. You can see this for yourself.
Not only did the software post an absolute gain of – 22.3% (meaning that there was absolutely no recovery whatsoever), the overall recovery was just 6.92%. Moreover, it can be seen that the performance graph of the forex robot was indeed falling off as time passed. This is not a good reflection of its supposed powers of loss recovery in forex.
Drawdown
The drawdown rate also seemed to be rising as time went on. Hedging is supposed to be a risk mitigation strategy, but it seems that the software was actually taking more risk and subjecting the account to heavier drawdowns as time passed.
This is simply not the way to recover losses in a forex account. Heavy drawdowns will actually add to those losses.
Conclusion: To Trust or Not to Trust?
The Loss Recovery Trader EA is a forex trading software not to trust. There are just two problems identified with the software, but these are enough to put to rest any hopes or belief that this software is capable of recovering any losses sustained in forex.
If this software could not recover losses and a live, verified account on Myfxbook could show results that prove this, then there is no point trusting such a trading software. The facts snd figures are before you and do not lie.