LuxSignals | Millionaire Tier

You can see the Author's instructions below to get access to this indicator.

Our automated trading bot is engineered for traders who demand transparency, realistic backtesting, and disciplined risk management. The system is designed not only to deliver signals but also to operate under strict trading conditions that mimic real-world markets. Every element of the strategy has been fine‐tuned so that its performance metrics—whether measured by win rate, total profit, or profit factor—this all is controlled by LuxSignals’ algorithm. This algorithm is exactly what makes it unique from all other indicators on the market: The algorithm looks at 100 possible numbers for an input and then decided on the best one - eventually you have to enter this number into the settings, leaving you with no need to adjust the settings yourself via trial and error.

Why you need to change inputs

LuxSignals is on tradingview.com, which uses the coding language "Pine Script" for its indicators. Unfortunately, Pine Script is very limited in its capabilities and can't run too many calculations at a time or can't make multiple backtests at once. Each backtest with different settings requires an indicator to load again.

An indicator will load when it's added to the chart or if its settings have changed.

This is why you have to change LuxSignals' inputs a few times so it can collect the necessary data from backtests over time to decide on its best settings. With Pine Script it's impossible to run so many backtests at once, it would require it to load longer than a minute at once, but the limit for TradingView's free tier is 20 seconds.

How LuxSignals' algorithm works

LuxSignals actually only has two inputs: Input 1 and Input 2. The minimum input for each is 2, the maximum LuxSignals can recommend is 100. You can also use higher numbers than 100 to see its backtesting results.

At the end of each process (changing the inputs many times), you will receive the best settings for the exact chart and timeframe you are on for the starting settings you had.

In total LuxSignals has to decide on one settings pair of Input 1 and Input 2 from 10'000 possible ones (100 x 100 possible combinations). It does that by calculating the hypothetical backtesting results (the profit factor) of 100 different settings at once.

You can control for which Input these hypothetical results are with the "optimize for" setting. So if you optimize for Input 1, LuxSignals calculates 100 hypothetical results for all possible inputs of Input 1, ranging from 2 to 100.

Now Input 1 and Input 2 affect each other's backtesting results, that's why you have to switch between optimizing for one to another.


Strategy and Signal Generation

At the core of the bot is a refined indicator that blends classic technical analysis tools with a proprietary twist. The process is as follows:
* Average Price Calculation:
The system starts by computing the average price (AP) using the formula for HLC3 (the average of the high, low, and close prices). This balanced approach captures a comprehensive view of market price action.
* Exponential Smoothing:
An exponential moving average (EMA) over a period (n₁) is applied to the AP to obtain a smoothed value (ESA). This step filters out short-term noise while maintaining sensitivity to market changes.
* Volatility Measurement:
The absolute difference between the AP and its smoothed counterpart is then subjected to another EMA (using the same period n₁) to generate a dynamic volatility metric (D). This measurement adapts to market fluctuations.
* Normalization:
The difference between the AP and ESA is normalized by dividing it by (0.015 × D). This creates a channel indicator (CI) that scales according to current volatility levels.
* WaveTrend Oscillator Formation:
A second EMA (over period n₂) is applied to the normalized value (CI) to produce the final oscillator value (WT1). The WaveTrend oscillator, therefore, encapsulates both trend strength and market volatility in a single metric.
* Signal Generation:
Trading signals are derived from the oscillator’s behavior:
* A buy signal is triggered when WT1 crosses above zero.
* A sell signal is triggered when WT1 crosses below zero.
This carefully layered approach ensures that the signals are both timely and reliable, which LuxSignals takes care of.

Please note that the following guidelines have not been fully met in our current testing process: our published backtesting results might not completely avoid potential misinterpretations by traders; we have not utilized an account size reflective of the average trader’s capital; realistic commission fees and slippage may have not been incorporated into our simulations.

In summary, while we did not apply a fully comprehensive simulation of every realistic trading condition for the backtesting, our design ensures that the strategy is equipped with realistic risk management and execution parameters when actively trading. This dual approach allows traders to benefit from both efficient signal validation and robust, live market performance without compromising on safety or accuracy.

Trading is risky & most day traders lose money. All content, tools, scripts, articles, & education provided by LuxSignals are purely for informational & educational purposes only. Past performance does not guarantee future results.

Conclusion

Our automated trading bot stands out due to its transparent and its commitment to realistic, robust strategy testing. it offers traders a dependable tool for navigating the markets. Whether you prioritize win rate, total profit, or profit factor, this system is built to adapt and perform under real-world conditions while preserving your capital.