Signal Settings
Overview
The Signal Settings for Lune Aegis allow you to control the generation and behavior of trade entry signals. These settings provide a high degree of customization, letting you fine-tune the strategy’s responsiveness to different market conditions. By adjusting lookback periods, sensitivity, and various thresholds, you can tailor the signal logic to fit your specific trading style and the market you are analyzing.
Signal Generation Logic
To protect our proprietary algorithms, the exact mechanics of the signal logic are not disclosed. However, the conceptual approach can be understood as follows:
Lune Aegis uses a sophisticated, multi-model system to identify trading opportunities. The strategy first analyzes the current market environment to classify it into a specific "regime"—such as trending, mean-reverting, or highly volatile.
Based on this real-time classification, the strategy then uses a specialized analytical model best suited for that particular market condition. This adaptive approach, which is based on analyzing differences in market movement, ensures the signal logic remains effective and relevant as market behavior changes. All signals are confirmed on the close of a price bar to ensure they do not repaint.
Settings
The following settings control the core logic of the signal engine.
General Settings
Long Trades
Enables or disables the generation of long (buy) signals.
Short Trades
Enables or disables the generation of short (sell) signals.
Core Lookback Periods
These settings define the main timeframes used for market analysis.
Short-Term Lookback
Sets the period for short-term market analysis. Lower values are more sensitive to immediate price changes.
Range: 1 - 2000 Recommended: 5 - 25
Medium-Term Lookback
Sets the period for medium-term pattern and volatility analysis.
Range: 1 - 2000 Recommended: 15 - 50
Long-Term Lookback
Sets the period for long-term statistical analysis, which helps establish a baseline for market behavior.
Range: 1 - 2000 Recommended: 100 - 500
Signal Sensitivity & Thresholds
These settings adjust the strategy's overall responsiveness and the confirmation level required to generate a signal.
Signal Sensitivity
Controls the overall frequency of signals. Higher values lead to more signals with lower confirmation requirements.
Range: 1 - 100 Recommended: 30 - 70
Momentum Threshold
Sets the confirmation level for signals based on market momentum. Higher values require stronger momentum.
Range: 0.1 - 5.0 Recommended: 1.5 - 3.0
Reversion Threshold
Sets the confirmation level for signals based on mean reversion. Higher values require a stronger reversion setup.
Range: 0.1 - 5.0 Recommended: 1.5 - 3.0
Volatility Threshold
Sets the confirmation level for signals based on market volatility. Higher values require a stronger volatility setup.
Range: 0.1 - 5.0 Recommended: 2.0 - 4.0
Regime Detection Parameters
These settings influence how the strategy identifies the current market state (regime).
Data Source
Selects the price data used for calculations.
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hlc3
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Trend Lookback
Sets the period used for analyzing trend strength.
Range: 1 - 2000 Recommended: 10 - 30
Risk Lookback
Sets the period for risk and anomaly analysis.
Range: 1 - 2000 Recommended: 15 - 40
Momentum Lookback
Sets the period for momentum calculations.
Range: 1 - 2000 Recommended: 15 - 40
Detrend Lookback
Sets the period for the detrending process in signal analysis.
Range: 1 - 2000 Recommended: 30 - 100
Advanced Threshold Configuration
These settings define the thresholds for classifying the market into different regimes.
High Volatility Threshold
Sets the percentile for detecting a high-volatility environment.
Range: 0.01 - 0.99 Recommended: 0.65 - 0.85
Low Volatility Threshold
Sets the percentile for detecting a low-volatility environment.
Range: 0.01 - 0.99 Recommended: 0.25 - 0.50
High Trend Threshold
Sets the level for detecting a strong trending environment.
Range: 0.01 - 0.99 Recommended: 0.40 - 0.70
Low Trend Threshold
Sets the level for detecting a weak or non-trending environment.
Range: 0.01 - 0.99 Recommended: 0.20 - 0.40
Anomaly Threshold
Sets the threshold for detecting anomalous or unusual market conditions.
Range: 0.5 - 10.0 Recommended: 3.0 - 6.0
Best Practices & Usage
Balance Sensitivity and Confirmation: Lowering threshold values or increasing
Signal Sensitivity
will generate more signals but may also increase the number of false positives. Higher values will provide stronger confirmation but may result in fewer trading opportunities. Find a balance that suits your risk tolerance.Adjust Lookbacks for Your Timeframe: If you are trading on a lower timeframe, consider using shorter
Lookback
periods to make the strategy more responsive. For higher timeframes, longerLookback
periods can provide more stable and reliable signals.Tune One Thing at a Time: When optimizing the settings, adjust only one parameter at a time. This will help you clearly understand the effect of each change on the strategy's performance during backtesting.
Start with Recommended Values: The recommended values provide a solid starting point for most markets. Use them as a baseline and then carefully adjust them based on the specific asset and timeframe you are trading.
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