# Recovery Strategy

⚙️ Key Recovery Parameters

* [Max Recovery Trades](/smartchoise-manual/options/recovery/max-recovery-trades.md) (Limits the number of recovery trades the EA can open)

Optional settings

* [Min Price distance between Recovery Trades](/smartchoise-manual/options/recovery/min-price-distance-between-recovery-trades.md) Ensures a minimum defined spacing between consecutive recovery entries
* [Break Even](/smartchoise-manual/options/profit-management/break-even-in-account-currency.md) Determines when the EA should close trades at a neutral profit/loss point
* [Min profit for recovery pairs](/smartchoise-manual/options/recovery/min-profit-for-recovery-pairs.md) Specifies the least acceptable profit before closing recovery trade pairs

Settings that also affects Recovery Volume

* [Trailing Stop Loss](/smartchoise-manual/options/trailing/trailing-stop-loss-in-points.md) when [Trades to trail](/smartchoise-manual/options/trailing/number-of-trades-to-trail.md) option is set to 0 or more than 1 
* Lot Size Configurations:
  * [Auto lot size multiplier](/smartchoise-manual/options/custom-lot-size-settings/auto-lot-size-multiplier.md): Adjusts lot sizes based on account balance and risk settings.
  * [Fixed Lot size](/smartchoise-manual/options/custom-lot-size-settings/fixed-lot-size.md): Uses a constant lot size for all trades.
  * [Percentage of deposit to risk per transaction](/smartchoise-manual/options/custom-lot-size-settings/fixed-lot-size-based-on-of-balance.md) Calculates lot size based on a set percentage of the account balance

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#### How It Works

When a trade moves into drawdown, the EA:

1. **Waits** for better market conditions instead of closing early.
2. **Opens a recovery trade** (or trades) with adjusted volume in the same direction as the entry trade (first trade).
3. **Monitors Overall Exposure**: Ensures that the total risk remains within predefined limits based on selected [risk level](/smartchoise-manual/options/risk-management/risk-level.md).
4. **Closes Trades Strategically**: Exits positions when the combined trades reach a break-even point or desired profit.

This approach is based on the principle that many drawdowns are temporary and can be recovered with controlled, intelligent trade management.

This approach aims to recover losses without resorting to aggressive doubling strategies, maintaining a balance between risk and reward.

This strategy allows the EA to exit unfavorable trades at break-even or with profit, depending on the setup. 

The Recovery Strategy in SmartChoise EA is engineered to manage and recover from drawdowns by intelligently adjusting trade sizes and entries. Unlike traditional martingale systems, it employs a neural network–driven approach to assess market conditions and execute recovery trades with calculated risk, aiming for long-term, controlled growth.
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#### Best Practices

* **Use Conservative Settings**: Especially for small accounts, to prevent excessive drawdowns.
* Use [Hard Stop](/smartchoise-manual/options/account-protection/hard-stop-only-ea-trades.md) setting — this defines your absolute risk cap.
* Use **lower** [**risk levels**](/smartchoise-manual/options/risk-management/risk-level.md) if you're new to recovery strategies.
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#### Why Not Use Stop Loss Instead?

While traditional SL protects capital, it can lead to frequent small losses in ranging or volatile markets. The recovery strategy offers a way to exit more intelligently — especially useful in mean-reverting or sideways conditions.

However, it is not risk-free. Proper settings, experience, and risk control are essential.
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