# The Strategies

Two ways to trade with LuxSignals. Pick one based on how you like to manage risk and time in the market.

***

### Mode 1 — Stop Loss & Take Profit (ATR mode)

**What it does:**\
Opens a position when a strong trend signal appears, sets an **ATR-based Stop Loss**, and scales out with **up to 4 Take Profits**. Exits follow a “**TP-first**” policy (TPs are prioritized when SL/TP are both touched in the same candle).

**How entries are generated (under the hood):**

* Trend momentum via **fast vs slow EMA** (MACD-style).
* **Long** when momentum turns up **and** fast EMA > slow EMA.
* **Short** when momentum turns down **and** fast EMA < slow EMA.
* **RSI filter** bias (optional) must also agree (details below).
* **Cooldown**: waits a minimum number of candles before a new entry.

**Key settings you’ll touch:**

* **Take Profits**: 1–4 slices (equal fractions).
* **Stop Loss (× ATR)**: typical starting point **1.0–2.0**.
* **Risk-Reward ratio (RR)**: common range **1.5–3.0**.
* **Signal Length**: lower = more signals; higher = cleaner signals.

**Good for:** clear risk upfront, partial profit-taking, low-to-medium noise charts.

***

### Mode 2 — Pure Signals (Always-in)

**What it does:**\
Keeps you **always in the market**, flipping from long → short (or vice versa) when the trend changes. No fixed SL/TP; exits happen on the **next flip**.

**How flips are generated (under the hood):**

* Two EMAs define **raw trend**; a smoothed signal line defines **confirmation**.
* A **flip** happens when raw trend crosses the smoothed line (on candle close).

**Key settings you’ll touch:**

* **Signal Length** (base): sets how reactive the EMAs are.
* **Length Smoothness**: higher = fewer, cleaner flips; lower = more reactive.
* **Signals Lengths Ratio**: widens the gap between fast & slow EMAs (fewer flips).

**Good for:** trending markets, swing strategies, simplicity without fixed targets.

***

### Filters & Preferences (both modes)

Use these to reduce noise and tailor signals to your bias.

#### 1) Trading Preference

* **All Trades** (default), **Only Buy Trades**, **Only Sell Trades**\
  Useful for filtering to trend direction or avoiding shorting on certain markets.

#### 2) RSI Filter Bias (ATR mode)

* Entry must agree with RSI around **50 ± Bias**.
  * **Longs** require RSI > 50 + Bias
  * **Shorts** require RSI < 50 − Bias
* **Recommended**: start with **Bias = 0–10**. Increase to cut chop.

#### 3) Minimum Candles Between Signals (ATR mode)

* Enforces a **cooldown**: prevents rapid re-entries.
* **Recommended**: start around **5–10**; lower for scalping, higher for swing.

***

### Choosing a mode (quick decision)

| If you want…                                       | Choose           | Why                                                                   |
| -------------------------------------------------- | ---------------- | --------------------------------------------------------------------- |
| Defined risk, partial exits, clearer money metrics | **SL/TP (ATR)**  | You set SL×ATR & RR; dashboard reflects your risk and fees precisely. |
| Maximum simplicity, always in a trend              | **Pure Signals** | No fixed targets; flip on confirmed trend change.                     |

> Tip: You can start with **SL/TP** for risk discipline, then explore **Pure** once you’re comfortable with flips.

***

### Practical setup tips

* **Signal Length**:
  * Lower = more entries (good for active markets).
  * Higher = fewer, cleaner entries (good for noisy markets).
* **RSI Bias**: If you see too many losing countertrend signals, **increase** it.
* **Only Buy/Sell**: On strong uptrends, use **Only Buy** to avoid short traps.
* **Smoothness (Pure)**: If flips feel whipsaw-y, **raise** Length Smoothness.

***

### What you’ll see on chart

* **SL/TP mode**: BUY/SELL labels, SL/TP boxes that fill as targets hit, dashed connectors from entry to exits.
* **Pure mode**: BUY/SELL labels on flips; P/L label printed at close of each leg.
* Filters work silently—when stricter, **fewer signals** pass through.

***

### Quick start presets (safe defaults)

* **ATR mode**:
  * SL = **1.5 × ATR**, RR = **2.0**, TP count = **2–3**
  * RSI Bias = **5**, Min candles = **6–10**
* **Pure mode**:
  * Use **Automatic** first; if Manual, increase **Length Smoothness** until flips match your intended pace.

***


---

# 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/the-strategies.md?ask=<question>
```

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.