Signal Settings

Overview

The Signal Settings panel within Lune Zentro allows users to configure how trade entry signals are generated using adaptive, probability-based logic. The settings provided here help customize the behavior and sensitivity of the strategy’s advanced signal engine.

While Lune Zentro incorporates dynamic statistical modeling and machine learning–inspired techniques, the underlying logic remains intentionally abstracted to preserve the integrity and proprietary nature of the system. This documentation is focused solely on how to adjust settings—not how the underlying logic is constructed.

Signal Generation Logic

Lune Zentro is designed to detect strong market signals by combining trend smoothing, adaptive windowing, and statistical normalization. The normalized signal—derived from changes in price trends—is compared to a configurable threshold. If the score exceeds that threshold, a trade signal is generated and confirmed only after the bar closes, ensuring the signal is non-repainting and reliable.

The system dynamically adjusts to recent market conditions, which helps improve the timing and relevance of trade entries while reducing the risk of false signals caused by short-term volatility.

Settings

Setting	Description
Long Trades	Enables buy-side (bullish) trade signals.
Short Trades	Enables sell-side (bearish) trade signals.
Adaptive Window	Controls how many past bars are used in the core signal calculation.
Smoothing Window	Sets how many bars are used to smooth the core signal, improving reliability.
Signal Threshold	Defines the minimum strength the signal must reach to trigger a trade.

Best Practices & Usage

• Enable Relevant Signal Directions

  • Enable Long Trades to participate in bullish price trends.

  • Enable Short Trades to trade in bearish market conditions.

• Adjust Adaptive Window & Smoothing

  • Shorter Adaptive Windows increase responsiveness but may introduce more signals, including noise.

  • Longer Windows smooth out volatility and may reduce over-sensitivity.

  • Lower Smoothing Window values are better for fast, intraday setups.

  • Higher Smoothing Window values help suppress whipsaw activity in choppy or range-bound markets.

• Tune the Signal Threshold

  • A lower threshold increases signal frequency and is better for high-volatility conditions or short-term strategies.

  • A higher threshold produces fewer but more statistically confident signals, ideal for swing or position trading.