Strategy Settings
Last updated
Last updated
Copyright © Lune Trading. Disclaimer: Past performance is not indicative of future results. Our content is for educational and informational purposes only, reflecting our perspectives and not professional financial advice. Trading and investing is risky.
Signal Modes are at the core of fine-tuning your strategy experience, ensuring that your approach to the markets aligns with your unique perspective. They're designed to seamlessly integrate with your personal trading style, be it going with the market's flow or charting your own course against it.
Choosing a Signal Mode is all about reflection - understanding who you are as a market participant and how you perceive market movements.
Know Yourself: Before making a selection, introspect on what excites you in the market. Is it the thrill of catching a wave and riding it, or the challenge of going against the grain?
Make a Selection:
For Trend Followers: If you resonate with the idea of aligning your decisions with the market's direction, Confirmation mode is your go-to choice.
For the Mavericks: If you feel the market presents opportunities when it seems to be moving in one clear direction, and you want to capitalize on potential reversals, the Contrarian mode is tailored for you.
Stay Flexible: Remember, as you evolve in your trading journey, it's okay to switch modes. What's vital is ensuring that the mode you select aligns with your current mindset and strategy.
Embrace your style, trust your instincts, and let the Signal Modes be the tool that amplifies your unique voice in the market.
Tailoring your Signals to mirror your trading style is paramount for a cohesive trading experience. By having control over the sensitivity and frequency of your signals, you can ensure that your strategy stays aligned with your risk tolerance and market perspective.
Understand Your Trading Style:
Day Traders: If you're a day trader, you might prefer low sensitivity and low velocity to capitalize on quick market movements.
Swing Traders: Those who hold positions over several days might want moderate sensitivity to filter out daily noise but maintain a decent velocity to act on medium-term trends.
Long-term Investors: Might go for high sensitivity and high velocity, focusing only on major market shifts.
Adjust Signal Sensitivity:
Increase Sensitivity: If you prefer signals based on more substantial and possibly more reliable market shifts, increase the sensitivity.
Decrease Sensitivity: Move the slider or input a lower value if you want your signals to be triggered by smaller market movements.
Modify Signal Velocity:
Increase Velocity: For a more relaxed approach, where you're only alerted of significant opportunities, lower the velocity.
Decrease Velocity: If you want to receive signals more frequently, perhaps to stay on top of rapid market changes, decrease the velocity.
Test and Refine: After setting your preferences, monitor the signals you receive. If they're too frequent or too sparse, revisit the settings. It might take a few adjustments to get it just right for your style.
Stay Updated: As market conditions and your personal trading style evolve, regularly review and adjust your settings to ensure they remain aligned with your current strategy.
By taking control of Signal Sensitivity and Signal Velocity, you empower yourself to stay attuned to market movements that matter the most to you, filtering out unnecessary noise and focusing on genuine opportunities.
The Counter Trade feature serves as a unique tool for traders, allowing them to invert the logic of their strategies. By enabling this feature, traders essentially flip the script on their trade executions: positions that would have been long are now taken short and vice versa. This can be particularly useful when an initially devised strategy is consistently underperforming.
Evaluate Your Strategy Performance: Before activating the Counter Trade feature, it's crucial to determine whether your strategy is genuinely failing consistently. Track its performance over a meaningful time frame to get a clear picture. Sporadic losses don't warrant the use of this feature; however, consistent underperformance might.
Monitor Performance Closely: After enabling the Counter Trade feature, it's essential to keep a close eye on your strategy's performance. Track whether the counter trading genuinely improves profitability or if adjustments are needed.
Use with Caution: The Counter Trade feature is a drastic measure. Just because a strategy has been underperforming doesn't always mean its opposite will be profitable. Always be cautious of other market factors and consider if there may be external reasons for the strategy's initial failure.
Regularly Review Your Strategy: If the Counter Trade feature proves beneficial, it might be worth reassessing your original strategy. Understand why the opposite approach works better and consider refining or developing a new strategy based on these insights.
Consider Stop-Loss and Take-Profit Levels: When you flip your trading logic, it's also wise to reassess your risk management tools. Your original stop-loss and take-profit levels might not be suitable for counter trading, so adjust them accordingly.
Remember, while the Counter Trade feature offers a novel way to leverage an underperforming strategy, it's not a surefire solution. It requires the same level of diligence, risk management, and regular review as any other trading approach. Always trade responsibly and consider seeking expert advice if uncertain.
The Strategy Dashboard is an essential tool for traders who want to have a finger on the pulse of their trading strategies. This dashboard consolidates crucial trading metrics into a single view, giving traders an instantaneous snapshot of their strategy's performance. Metrics such as "Net Profit %", "# Closed Trades", and "Win Rate" among others, provide deep insights into the efficiency and effectiveness of the trading strategy in play.
Understand Each Metric:
Net Profit %: This showcases the percentage of profit or loss you've made from your strategy.
# Closed Trades: Total number of trades that have been finalized.
Win Rate: Percentage of trades that resulted in a profit.
Profit Factor: Ratio of gross profit to gross loss. A value greater than 1 indicates profitability.
Max Drawdown %: The largest drop in value or capital, indicating the highest loss from a peak to a trough.
Avg Trade Profit %: The average profit percentage for each closed trade.
Avg # Bars in Trade: Average number of bars (time intervals, e.g., days, hours) a trade remains open.
Analyze Regularly:
Periodically check the Strategy Dashboard, especially after a series of trades. This will help you monitor if your strategy is performing as expected or if tweaks are required.
Adjust Your Strategy:
If you see concerning patterns like a high "Max Drawdown %" or a declining "Win Rate", it may be time to reevaluate and adjust your trading strategy.
Consider Historical Performance:
While the Strategy Dashboard provides current metrics, compare these to past performance. Understanding how metrics have evolved over time can provide a richer context.
Risk Management:
Pay close attention to "Max Drawdown %" as it indicates the risk involved in your current strategy. If it's higher than what you're comfortable with, consider employing stricter risk management techniques or adjusting the strategy.
Stay Updated:
As your trades progress, metrics on the dashboard will change. Stay updated by setting reminders to check it, especially after significant trades or market events.
The Strategy Dashboard is a compass for traders, pointing out how well they are navigating the financial markets. By understanding and leveraging the insights it offers, traders can make informed decisions and refine their strategies for better profitability and reduced risk. Always remember to consider the broader market context and external factors that might not be reflected in the dashboard's metrics.
| Signal Mode (Dropdown Options) | Description |
|---|---|
| Signal Sensitivity (User Input) | Description |
|---|---|
| Signal Velocity (Dropdown Options) | Description |
|---|---|
| Setting | Description |
|---|---|
| Strategy Dashboard (Dropdown Options) | Description |
|---|---|
None
No signals are displayed.
Confirmation
Assists in confirming the trend direction.
Contrarian
Helps confirm potential turning points and trend reversals.
Minimum: 1
Low numbers Increase sensitivity to short-term changes.
Maximum: 30
High numbers reduce sensitivity to short-term changes.
Minimum: 1
More Sensitive to long-term price changes.
Maximum: 30
Less Sensitive to long-term price changes.
Counter Trade
Invert the logic of your strategy.
Size
Customize your Dashboards size.
Location
Customize your Dashboards location.
