# Parallax Sample

## ZONE RECOVERY ALGORITHM ILLUSTRATION

This Loss Recovery Trader system is based on the zone recovery algorithm .

We will explain how the algorithm works with an example.

You open a trade ,set your profit target and the Zone Recovery Pips Start (the number of pips to be lost before the Zone Recovery Algorithm starts working)

For example 1 Lot Buy, 150 pips Take Profit, 50 pips for the Zone Recovery Pips Start.

Scenario 1: The Take Profit (150 pips) is reached before the Zone Recovery Pips Start (50 pips). Profits are locked and trade is closed.

Scenario 2:   You reach the Zone Recovery Pips Start (lose 50 pips)  before reaching Take Profit . Here is when the algorithm kicks in.

• A trade to the opposite direction is opened with a different lot size (ie 1.4 Lots Sell) .
• A new exit point is determined for exiting all the trades (ie 150 pips lower the last Sell trade)
• Once the exit point is reached all trades are closed and both trades close in a combined profit .
• 1.4 Lot x (150 pips) – 1Lot x (-200 pips)= 210 pips -200 pips = 10 pips profit
• If the after the last trade (1.4 Lots Sell) the market moves, once again, against us to the Zone Recovery Pips Start before reaching the exit point an additional trade is now opened (0.93 Lots buy) . All trades will close once the upper  Take Profit Exit Point is reached.
• The algorithm keeps repeating this process of buying and selling,when the market moves against you and closes all the trades together when either of the following ends are reached.

This is best illustrated in the picture above