# \[Legacy] All settings explained

## Input 1

LuxSignals uses its own patented algorithm and the Input 1 changes a key length in this algorithm. You don't need to understand it to make profits with LuxSignals.&#x20;

## Input 2

Input 2 does the same as Input 1, but it interferes with Input 1. Together with Input 1 they form 40'000 unique backtesting possibilities.

## Switch

Switch simply switches the strategy - buy signals become sell signals and sell signals become buy signals. Why would you do this? Because sometimes LuxSignals detects backtesting results that are so bad, they would outperform the good results if just switching them. Thus, you're twice as likely to find a profitable setup.

Switch often causes a very high win rate.

## Optimize

If you don't tick this setting, it will optimize the input for Input 1, so LuxSignals searches for the most profitable input for Input 1. If you tick this Optimize setting, it will optimize for the Input 2. This was made as checkbox to make the settings changes faster and easier.

## Extension

If you turn on the extension, LuxSignals will look for the best input (depending on the input you're optimizing for) in the range of 100-200. If you have it turned off, LuxSignals will look for the best input in the range of 2-100. This expands the probability of an even more profitable setup by 4 times.

## Use maximum backtesting range

Normally, if this is not activated, LuxSignals will only backtest for the previous 5000 bars. This is default, as it focuses on more recent results and makes it compatible with the Free TradingView tier.

If you turn it on (which is especially impactful for premium TradingView users because they have more bars on their chart), LuxSignals will backtest all the available bars. This will increase loading times and will cause more backtested trades. It's normal that it reduces LuxSignals' performance.&#x20;

## Maximize results for

On default it's Profit Factor, which is what we recommend if you want the most reliable profits and a good risk over the long term. LuxSignals will try to get the highest results for whatever you maximize for, but this won't mean that it's the maximum for the other results. So if you're optimizing for the Profit Factor, you might get a lower win rate of 34% (but that absolutely doesn't matter). If your Profit Factor is over 1, you're very much profitable. Having a lower win rate just means that you're making fewer wins, but therefore these wins are many many times bigger than your losses.

{% hint style="info" %}
The profit factor is the total profit you made divided by the total losses you made. So if let's say you backtested a few trades and you made total wins of $600 and total losses of $400, your profit factor would be 1.5, which is already very good (over 1 means you're profitable). The Profit factor is more important and reliable than the Win Rate or Total Profit.
{% endhint %}

## Initial Capital

It's just here so you can customize it for whatever your real account size is. With it, LuxSignals will calculate the Total Profit and Recommended entry Size.&#x20;

## Risk Management

On default, it's automatic and it will calculate for you the recommended entry size when trading with LuxSignals based on your capital and the Risk Level for the maximum profits. If you set it to Manual, you can choose your own entry size.

## Risk Level

This is only used if your risk management is set to Automatic. Low will make sure that LuxSignals tries to make the average trade about 0.5% of your account, with Medium you will risk about 3% of your account and with High Risk you will risk about 7% of your account.&#x20;

## Trade Size

This is only used if your risk management is set to Manual. You can input how many assets you want to trade exactly.

## Activate Auto Trading Bot

This will activate automatic trading and enable "order fills only" alerts. It is required to be turned on if using LuxSignals as a [trading bot.](/luxsignals/focus/luxsignals-legacy/legacy-trading-bot-luxsignals.md)&#x20;

## Hide Setup

It's quite self-explanatory, but if you hide the setup completely, LuxSignals will load about 2x faster. So when you found your best settings, hide the setup so LuxSignals can be more efficient. &#x20;

## Primary Color

It's used for the signals' color and text color in the setup.

## Secondary Color

It's used for the signals' text color and the background color of the setup.


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