# Quick Walk-Through {% hint style="warning" %} Please note that this whole guide might miss information or is outdated. Please contact Luxy Instant Support here: [**👉** ](https://www.luxsignals.com/luxy)[**https://www.luxsignals.com/luxy**](https://www.luxsignals.com/luxy) **- Luxy knows everything about LuxSignals and can help you better than this guide.** {% endhint %} {% hint style="info" %} This page is dedicated to the Take Profit & Stop Loss strategy of LuxSignals, instructions for the other strategies will follow soon. {% endhint %} ### What you’ll see on the chart * **Signals**\ Buy and Sell entry signals and exit signals showing the profit/loss of that trade > Tip: If you don't see any signals, zoom out on your chart as much as you can and look further into the past of the chart. Change the settings you need more signals (more on that below) * **SL and TP boxes**\ One Stop Loss and 4 Take Profits * **Dashboard (bottom-right)**\ Shows backtesting results, additional information and the chosen best settings * **Wave Trend AI**\ A clean visual that makes trend & momentum easy to see. > Tip: If you want to change the looks of anything, open the settings (more on that below) and under the "**Visuals"** section you can choose your preferences. *** ### 1) How to open the settings Double-click the **Dashboard,** which is the table in the bottom-right corner of your chart *** ### 2) General Settings These are the most important settings and are at the top of the LuxSignals Settings. * **Settings Selection**\ You can choose between **Automatic** and **Manual**. * With Automatic LuxSignals will **automatically search** for the perfect settings (which exact settings these are are explained below) to choose from based on the limits you specified in the "Automatic Settings Selection" section of the LuxSignals Settings. * With Manual LuxSignals **will use the exact Settings you specified** in the "Manual Settings Selection" section of the LuxSignals Settings. * **Optimize For**\ You can choose between various optimization Goals. LuxSignals will find the perfect settings in order to maximize one of these results (you can see the results in the dashboard): * *Total Profit* **will maximize the total profit** you will make at the end. * *Win Rate* will try to maximize the win rate of the signals, but this is **not recommended** as it leads to less profits and often smaller trades. * *Profit Factor* will maximize **the ratio between your total losses and total wins**. For example, if you won $600 and lost $200, your Profit Factor would be **3** (since 600 divided by 200=3). * *Minimum Drawdown* will try to minimize the drawdown. Make sure to use a **fixed Percent or fixed Amount** in the Risk Management settings, otherwise it will trigger a warning. *** ### 3) Automatic Settings Selection If you chose **“Automatic”** as **“Settings Selection”**, LuxSignals will automatically pick the best settings for the result you chose to optimize. Summarized: In these settings you can choose the minimum and maximum Signal Length (more on that below) you want LuxSignals to test and if you use the Stop Loss and Take profit strategy you can set the minimum and maximum Stop Loss and Risk-Reward Ratio you want LuxSignals to test. Luxsignals will test all combinations between these minimums and maximums (how many exactly is set in the resolution) to find the best one. Luxsignals makes a few hundred backtests in a few seconds and then picks the best combination. How cool is that! #### 3.1) What *the Resolutions* and *Signal Length* mean LuxSignals will test as many different **Signal Lengths** as you set in **Signal Length Resolution**. But what is Signal Length?\ Signal Length controls how many signals you get and where trades happen. Bigger Length = fewer, cleaner signals. Smaller Length = more, faster signals. You set a **Length range** (min and max). LuxSignals spreads its backtests across that range.\ Example: if your range is between **10 and 50** and your resolution is **5**, it will literally backtest all signals 5 times, each time with different Lengths. In this example it would exactly test **10, 20, 30, 40 and 50**. Now that we know what Signal Length is, **Signal Length Resolution** is simply how many different Length values it tries in that range. There’s also a **Risk Resolution** that does the same thing for the risk side (explained below). Total backtests = **Signal Length Resolution × Risk Resolution**. More backtests = finer search, but it takes longer to load. Try to keep the total backtests below 1000, otherwise it might not load at all. #### 3.2) What *Stop Loss, Risk-Reward Ratio and Smoothness* mean **Stop Loss & Take Profit** * Stop Loss size measured in ATR. **ATR is the average size of the last 14 candles (roughly “one candle”).** * **Risk–Reward Ratio:** how far Take Profit is compared to the Stop Loss. For example, if your Stop Loss is 2 and your Risk-Reward Ratio is 3, then your Take Profit is 6.\ Risk Resolution decides how many SL and RR steps it tries inside the ranges you set. **Pure Signals** * **Length Smoothness:** how much the trend is smoothed. Higher Smoothness = less, later signals.\ Here, Risk Resolution controls how many different Smoothness's it tries. #### 3.3) What this means in the end For example, if you used the "Stop Loss and Take Profit" strategy and you chose to optimize the total profit and you set the Resolutions to 10 each, LuxSignals will do 100 backtests (because 10 x 10 is 100) trying out all possible combinations of Length, Stop Loss and Risk-Reward Ratio ranges. Below you can see a screenshot how these backtests look like. Here we set our Length range from 5 to 50, the Stop Loss range from 1 to 4 and the Risk-Reward Ratio range from 1 to 4.5
You can see the biggest number is 51.7 - this means that from these 100 backtests, the combination of 30 Signal Length, 2 Stop Loss and 3.63 Risk-Reward Ratio was the winner. Here, you will see a 51.7% total profit in the results dashboard. You can see these exact results like in the picture when you enable the Heatmap in the Table Settings in the "**Visuals**" section. #### 3.4) Why this is so great You’re not guessing settings — the tool searches them for you on the fly and locks in the best one. This is the clever part that makes LuxSignals feel unfairly good. *** ### 4) Manual Settings Selection If you want LuxSignals to use specific Settings, you can enter them there if you set your "Settings Selection" to "Manual". *** {% hint style="success" %} LuxSignals 2.0 was just released, a better guide and video tutorials will soon be published. {% endhint %} --- # 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/quick-start/quick-walk-through.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.