Signal Settings

Overview

The Signal Settings panel in Lune Momento allows users to configure and manage how entry signals are generated. The system provides flexible inputs for enabling long or short trades and adjusting sensitivity parameters that influence how the strategy interprets trend and momentum.

Although Lune Momento uses a sophisticated signal engine inspired by machine learning concepts, the core logic is intentionally abstracted to preserve the proprietary nature of its algorithms. This documentation focuses on how to configure signal-related options, not how the algorithm internally operates.

Signal Generation Logic

Lune Momento combines trend recognition and short-term momentum analysis into a normalized signal score. Using a rolling window of historical price data, it performs polynomial approximation to extract a smoothed trend component, which is then combined with momentum shifts in price.

The final signal is a weighted composite of these two components. Once this composite signal exceeds a configurable threshold, a long or short trade signal is confirmed—only on bar close—ensuring non-repainting and reliability.

Settings

Setting	Description
Long Trades	Enables bullish signal generation.
Short Trades	Enables bearish signal generation.
Rolling Window Size	Defines how many past bars are considered in the approximation.
Polynomial Order	Sets the complexity of the curve used to approximate the trend.
Short-Term Sensitivity	Adjusts how strongly short-term momentum is weighted in the signal logic.
Long-Term Sensitivity	Adjusts how strongly long-term trend is weighted in the signal logic.
Signal Threshold	Minimum signal strength required to confirm a trade signal.

Best Practices & Usage

• Enable Trade Direction

  • Enable Long Trades to participate in bullish market momentum.

  • Enable Short Trades when trading in bearish market conditions.

• Adjust Sensitivity Inputs

  • Short-Term Sensitivity:

    • Use higher values for aggressive trading in volatile markets.

    • Use lower values to reduce noise during choppy price action.

  • Long-Term Sensitivity:

    • Higher values help filter out short-term swings and emphasize overall trend direction.

    • Lower values may make the system more reactive.

• Tune Signal Threshold

  • Lower Thresholds generate more frequent signals, helpful for scalping or fast-moving assets.

  • Higher Thresholds improve confidence by requiring stronger signal confirmation.