# \[Legacy] How to use LuxSignals ## Very Important notes {% hint style="info" %} Note: LuxSignals is regularly updated, so the guide may not always show the latest version of LuxSignals. However, the core concept remains the same, so there’s no need to worry. {% endhint %} {% hint style="success" %} Tip: We recommend making the setup on a computer, if you are using TradingView on a phone, the setup can be a bit harder. {% endhint %} {% hint style="warning" %} **Please don't judge LuxSignals based on the signals you see!** **When trying to find out whether LuxSignals is working or not, please look at the results.** **Sometimes you might get strange signals (which is normal for trading indicators), but they will get cancelled out with other, better signals. Please focus yourself on the results you get in the end, which are visible in the bottom right corner.** **It's crucial to follow the setup below to maximize the results for LuxSignals.** {% endhint %} ## Setup Video ## [Here you can see LuxSignals' simple and quick setup video.](https://www.youtube.com/watch?v=h604qNYUUxY) ## Detailed Setup for maximum profitability LuxSignals is **one of the simplest indicators**: You simply buy when it gives a buy signal and you will sell if you get a sell signal. You can go on like that infinitely and you will always have an open position. There is no take profit or stop loss because it makes it easier and more profitable (yes, we even made a study on it). **The basic concept of LuxSignals is this: You see the recommendations for the optimal settings in the LuxSignals dashboard and then you follow these recommendations in LuxSignals' settings. You do this a few times until you get the message that you achieved the final best settings.** **This is what makes the LuxSignals AI unique and profitable, other indicators don't have this smart auto-adjusting settings feature.** Let's take a closer look by opening LuxSignals' settings (please double click on the setup).
Alright, here we see the settings **(see picture below)**. They are further explained in [this part of the guide.](/luxsignals/focus/luxsignals-legacy/images-and-media.md) Important for LuxSignals' performance are only the settings which are in the "Change Settings" section. You can see the current performance of LuxSignals in the Results tab. {% 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 %} {% hint style="warning" %} ***On Basic and Plus*** LuxSignals is focusing on improving the profit factor, which is **the most important aspect of backtesting** **and it decides on whether you're profitable or not**. LuxSignals is ignoring the win rate in its backtests as it's **not** as reliable as the profit factor. So as long as you have a profit factor above 1, you're profitable and the win rate can't guarantee you that (you could have a win rate of 90%, but still have a profit factor of 0.8, which makes you unprofitable) ***With Ultimate*** you can adjust LuxSignals' settings so they maximize the win rate or total profit for you! {% endhint %}
Now let's try to improve these strategy results! We do this by carefully following the "Best Settings" advice. For that, start entering the recommended changes in the settings from the top to bottom and make sure to be fast, as it might otherwise update too early.
Now wait for LuxSignals to load, this might take around 15 seconds. During this time, it's doing millions of calculations, trying to find the next best settings based on the settings we just changed. You can see that it's by looking at the spinning eye.
Once it has finished loading, you will see the best settings have updated as LuxSignals now sees better opportunities. Follow these recommendations once again and wait for LuxSignals to load.
Now repeat this process of loading & changing LuxSignals' settings until you don't get any recommendations anymore. This might take anywhere between 1 to 10 cycles, depending on how much opportunity LuxSignals sees on this particular chart. Once you're finished, you got the best settings for the chart and timeframe you are on. For another chart or timeframe you will need to follow the setup again from the beginning. You can also see our opinion on your strategy on the bottom of the setup.
## Not impressed yet? No worries; [here you can see our exact detailed strategy on how we make 40K each month.](/luxsignals/focus/luxsignals-legacy/legacy-how-exactly-we-make-40k-each-month-with-trading-you-can-too.md) You can achieve the same exact results as we do! ## Pro Tips 1. We recommend focusing on the profit factor rather than the win rate. 2. Use different starting settings to see if they can bring better results in the end. On default they're 10 and 21, but you can choose different ones like 2 and 2, 50 and 50 or 90 and 25 - whatever you want. ## When to change your settings again You will need to change your best settings again if... 1. ...you change your chart to another asset or timeframe. LuxSignals is always focusing on maximizing results for the charts it's on. 2. ...sometime soon after getting the final best settings, LuxSignals will tell you to change the settings again with a new set of best settings, but you don't need to change the settings right away if you already did get the final best settings once. We recommend to remove your old settings and reapply LuxSignals to the chart and set it up with newly updated best settings about every month or even less if you trade on higher timeframes. The difference in the results here is minimal, but would be bigger if not done over longer periods of time. ## Settings for another chart To reset LuxSignals' settings for a new chart, simply click on the arrow in the bottom left corner of LuxSignals' settings.
Then click on reset settings. Now you can start all over again with the setup process for a new chart or timeframe.
Now [use alerts](/luxsignals/focus/luxsignals-legacy/legacy-signal-notifications.md) to save the settings for the chart and timeframe you're using and you will be notified about all signals LuxSignals will give in the future! --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://luxsignals.gitbook.io/luxsignals/focus/luxsignals-legacy/quickstart.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.