Signal Settings

Overview

The Signal Settings for Lune Zentro allow you to configure its highly adaptive, probability-based signal engine. This strategy is designed to dynamically adjust to changing market conditions by using an advanced statistical approach to generate signals. These settings give you detailed control over how the strategy analyzes market regimes, weighs different statistical models, and filters signals for quality and robustness.

Signal Generation Logic

To protect our proprietary algorithms, the exact mechanics of the signal logic are not disclosed. The conceptual approach can be understood as follows:

Lune Zentro employs a sophisticated, multi-stage process to generate trading signals. The strategy begins by identifying the current market "regime" (e.g., bull trend, volatile range, etc.). It then calculates a wide array of advanced statistical features from the price data, including momentum, volatility, and market microstructure information.

These features are then fed into specialized sub-models, such as a breakout model and a mean-reversion model. A key component of Lune Zentro is its ability to dynamically adjust the importance (weight) of each model based on the detected market regime. The outputs are then combined, filtered for noise, and used to generate a final, high-confidence trading signal with strong statistical backing.

Settings

These settings control the core logic that Lune Zentro uses to generate trade signals.

General Settings

Setting	Description
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.

Setting	Description	Range / Recommended
Short-Term Lookback	Sets the period for short-term market analysis and signal detection.	Range: 1 - 500 Recommended: 5 - 20
Medium-Term Lookback	Sets the period for medium-term trend analysis and regime detection.	Range: 1 - 500 Recommended: 15 - 50
Long-Term Lookback	Sets the period for long-term statistical analysis and establishing a baseline for market behavior.	Range: 1 - 500 Recommended: 30 - 100

Signal Sensitivity & Thresholds

These settings adjust the strategy's overall responsiveness and the confirmation level required to generate a signal.

Setting	Description	Range / Recommended
Signal Sensitivity	Controls the overall frequency of signals. Lower values result in more signals.	Range: 0.1 - 5.0 Recommended: 0.5 - 2.0
Breakout Threshold	Sets the confirmation level required for breakout signals.	Range: 0.1 - 5.0 Recommended: 1.5 - 3.0
Reversion Threshold	Sets the confirmation level required for mean reversion signals.	Range: 0.1 - 4.0 Recommended: 2.0 - 3.5

Regime Detection Parameters

These settings influence how the strategy identifies the current market state (regime).

Setting	Description	Range / Recommended
Regime Sensitivity	Controls how quickly the system adapts to changes in the market regime.	Range: 0.1 - 2.0 Recommended: 0.5 - 1.5
Volatility Weight	Controls the importance of volatility when classifying the market regime.	Range: 0.0 - 1.0 Recommended: 0.4 - 0.8
Trend Weight	Controls the importance of trend strength when classifying the market regime.	Range: 0.0 - 1.0 Recommended: 0.2 - 0.6

Advanced Feature Weights

These settings control the importance of different analytical models in the final signal calculation.

Setting	Description	Range / Recommended
Momentum Weight	Controls the influence of momentum-based features.	Range: 0.0 - 1.0 Recommended: 0.2 - 0.5
Mean Reversion Weight	Controls the influence of mean-reversion-based features.	Range: 0.0 - 1.0 Recommended: 0.15 - 0.4
Volatility Feature Weight	Controls the influence of volatility-based features.	Range: 0.0 - 1.0 Recommended: 0.15 - 0.4
Microstructure Weight	Controls the influence of market microstructure features.	Range: 0.0 - 1.0 Recommended: 0.1 - 0.3

Noise Filtering & Robustness

These settings help to improve signal quality by filtering out market noise and statistical outliers.

Setting	Description	Range / Recommended
Noise Filter Strength	Controls the strength of the adaptive noise filter. Higher values create smoother signals.	Range: 0.0 - 1.0 Recommended: 0.3 - 0.7
Outlier Resistance	Controls how resistant the signal calculation is to extreme or anomalous price movements.	Range: 0.1 - 1.0 Recommended: 0.5 - 0.8

Best Practices & Usage

• Balance the Feature Weights: The Advanced Feature Weights allow you to customize the strategy's core logic. For example, if you want to prioritize trend-following signals, you could increase the Momentum Weight while decreasing the Mean Reversion Weight.

• Adjust for Market Conditions: Use the Regime Detection settings to tune how the strategy views the market. Increasing Regime Sensitivity will make it adapt faster to changing conditions, which can be useful in volatile markets.

• Filter for Quality: Use the Noise Filter Strength and Outlier Resistance settings to control signal quality. If you find signals are too sensitive to small price fluctuations, increasing these values can help produce higher-conviction trade entries.

• Iterative Tuning: Due to the complexity of the engine, it's best to adjust only one group of settings at a time (e.g., only adjust the Advanced Feature Weights). Run a backtest after each change to clearly see its impact on performance.