FAQs

Our backtesting methodology is designed for maximum realism and accuracy:

Realistic Execution:

• Uses next bar’s open price for entries (not the signal bar’s close)
• No repainting – signals are confirmed and final
• Proper spread consideration built into calculations
• ATR-based stops using previous bar’s value (realistic stop placement)

Accurate Calculations:

• Forex: Correct pip calculations including JPY pairs (0.01 vs 0.0001)
• Crypto: Percentage-based analysis (basis points) for all price levels
• Stocks/Futures: Point-based calculations specific to each instrument
• Risk validation: Only counts trades with reasonable risk (<10% of entry price)

Conservative Approach:

• Minimum sample sizes required for recommendations (10+ trades minimum)
• Auto-closes old trades after 100 bars to prevent endless winners
• Realistic win rates typically 45-75% (not inflated 90%+ claims)

However, always remember that past performance doesn’t guarantee future results. Use backtesting as a guide, but start with small position sizes and verify performance with live trading before scaling up.

The optimal signal combination depends on your trading style, market conditions, and asset class. Here’s our guidance:

For Maximum Win Rate (Recommended for Beginners):

• Thunder Strike signals ONLY
• Typically achieves 65-80% win rates
• Fewer trades but higher quality
• Best for swing trading and position entries

For Balanced Approach (Most Popular):

• Thunder Strike + Wick Rejection
• Usually optimal combination in backtests
• Good balance of frequency and quality
• Suitable for day trading and swing trading

For Maximum Opportunities (Active Traders):

• All three signals enabled
• Higher trade frequency
• Requires good filtering and risk management
• Best for experienced traders who can handle more signals

Let the AI Decide (Recommended):

• Enable all signals initially
• Run 5,000-bar backtest
• Follow the “RECOMMENDED STRATEGY” in the status table
• The AI tests all combinations and tells you which performs best for your specific chart

Market-Specific Guidelines:

• Trending markets: All signals work well
• Range-bound markets: Focus on Wick Rejection
• High volatility: Thunder Strike most reliable
• Low volatility: 3-Bar Momentum for early detection

SMARTMONEY AI is designed as a manual trading indicator with visual signals and analysis, not for automated trading. Here’s what you need to know:

Current Capabilities:

• Visual signal alerts on TradingView charts
• Email and popup alerts when signals trigger
• Comprehensive backtesting for strategy validation
• AI assistant guidance for trade decisions

Automated Trading Limitations:

• No direct EA integration – signals are visual only
• No automatic order placement – requires manual execution
• No direct API for third-party trading software
• TradingView platform dependent – cannot export signals to MT4/MT5 directly

Workaround Solutions:

Semi-Automated Approach:

1. Set TradingView alerts for signal notifications
2. Receive alerts via email/SMS when signals appear
3. Manually verify signal quality using status table
4. Execute trades manually on your preferred platform

Professional Integration (Advanced Users):

• Screen scraping software can detect visual signals (not officially supported)
• Custom development possible but requires programming expertise
• Third-party bridge software may connect TradingView to other platforms

Why Manual Trading is Recommended:

• Market context matters – AI assistant provides real-time guidance
• Signal quality varies – not all signals are equal
• Risk management – manual oversight prevents over-leveraging
• Strategy adaptation – markets change, requires human judgment

For Automated Trading Needs: If you specifically need automated execution, consider:

• Using SMARTMONEY AI for strategy development and backtesting
• Recreating the logic in your preferred automated platform
• Combining with semi-automated alerts for best of both worlds

SMARTMONEY AI works on all timeframes, but optimal performance varies by trading style and asset class:

Recommended Timeframes by Trading Style:

Scalping (Quick profits, high frequency):

• 1-5 minute charts
• Use Wick Rejection signals primarily
• Higher DBX sensitivity (1.5-2.0)
• Tight R:R ratios (1.0-1.5)

Day Trading (Intraday positions):

• 15 minute to 1 hour charts (Most popular)
• All signal types effective
• Standard settings work well
• R:R ratios 1.5-2.5

Swing Trading (Multi-day positions):

• 4 hour to Daily charts (Highest win rates)
• Thunder Strike + Wick combination
• Lower signal frequency, higher quality
• R:R ratios 2.0-4.0

Position Trading (Long-term):

• Daily to Weekly charts
• Thunder Strike signals only
• Very selective, high-conviction trades
• R:R ratios 3.0-5.0

Asset-Specific Recommendations:

• Forex Major Pairs: 15M, 1H, 4H optimal
• Crypto: 1H, 4H, Daily (high volatility)
• Stocks: 1H, 4H, Daily (avoid news gaps)
• Futures: 15M, 1H, 4H (active sessions)

Pro Tip: If you’re unsure, start with 1-hour charts using Thunder Strike + Wick signals. This combination works well for most traders and provides a good balance of opportunity and quality.

SMARTMONEY AI provides comprehensive performance tracking to monitor your strategy effectiveness:

Key Performance Indicators to Monitor:

Win Rate:

• >65%: Excellent performance, consider increasing position sizes
• 55-65%: Good performance, maintain current approach
• 45-55%: Moderate performance, consider optimizations
• <45%: Poor performance, changes needed immediately

PnL Tracking:

• Positive and growing: Strategy working well
• Positive but flat: May need R:R ratio adjustment
• Negative: Immediate strategy review required

Signal Quality Analysis:

• Monitor individual signal type performance in backtesting
• Disable underperforming signal types
• Follow AI recommendations for optimal combinations

When to Make Changes:

Immediate Changes Needed (Red Flags):

• 3 consecutive losing weeks
• Account drawdown >10%
• Win rate drops below 40%
• Negative PnL over 50+ trades

Consider Optimizations (Yellow Flags):

• Win rate declining for 2 weeks
• PnL flat despite winning trades
• Market conditions changed significantly
• AI recommendations differ from current settings

Changes to Try (In Order):

1. Follow AI recommendations from status table
2. Adjust R:R ratio based on movement analysis
3. Change signal combination (usually reduce to higher quality only)
4. Switch timeframes (typically go higher: 15M → 1H → 4H)
5. Change asset class if current market unsuitable

Testing Protocol:

• Change one setting at a time
• Allow 20-30 new signals before evaluating changes
• Keep detailed records of what works and what doesn’t
• Revert changes if performance doesn’t improve within reasonable timeframe

SMARTMONEY AI provides multiple optimization methods to perfectly match your trading style and market conditions:

Automated Optimization (Recommended):

AI-Powered Analysis:

• Enable all signals initially and run 5,000-bar backtest
• Follow “RECOMMENDED STRATEGY” shown in status table
• AI tests all 7 combinations and selects optimal approach
• Movement analysis determines best R:R ratio automatically

Optimization Process:

1. Install with default settings (all signals enabled, R:R 2.0)
2. Let system run for 24-48 hours to gather data
3. Review AI recommendations in status table
4. Implement suggested changes one at a time
5. Monitor performance for 20-30 signals before further changes

Manual Optimization by Trading Style:

Conservative/Swing Traders:

• Signal Filters: Thunder Strike only
• DBX Key Value: 2.5-3.0 (less sensitive)
• Minimum Bars: 15-25 (longer spacing)
• R:R Ratio: 2.5-4.0 (larger targets)
• Timeframes: 4H, Daily

Active/Day Traders:

• Signal Filters: Thunder Strike + Wick Rejection
• DBX Key Value: 2.0-2.5 (balanced)
• Minimum Bars: 8-15 (moderate spacing)
• R:R Ratio: 1.5-2.5 (realistic targets)
• Timeframes: 15M, 1H, 4H

Scalper/High Frequency:

• Signal Filters: Wick Rejection + 3-Bar Momentum
• DBX Key Value: 1.5-2.0 (more sensitive)
• Minimum Bars: 3-8 (tight spacing)
• R:R Ratio: 1.0-1.5 (quick targets)
• Timeframes: 1M, 5M, 15M

Market-Specific Optimization:

High Volatility Markets (Crypto, News Events):

• Increase DBX Key Value to 2.5-4.0
• Focus on Thunder Strike signals (highest quality)
• Widen R:R ratios to 2.5-4.0 (can achieve larger targets)
• Increase minimum bars to reduce noise

Low Volatility Markets (Quiet Sessions, Ranging):

• Decrease DBX Key Value to 1.5-2.0
• Enable all signal types for more opportunities
• Tighten R:R ratios to 1.5-2.0 (realistic in limited movement)
• Decrease minimum bars for more frequent signals

Trending vs Ranging Markets:

Strong Trending Conditions:

• All signals work well – keep enabled
• Higher R:R ratios (2.5-4.0) achievable
• Standard DBX settings (2.0-2.5)
• Follow trend direction from background colors

Range-Bound Conditions:

• Focus on Wick Rejection signals (bounces off levels)
• Lower R:R ratios (1.5-2.0) more realistic
• Higher sensitivity (DBX 1.5-2.0) to catch smaller moves
• Shorter timeframes may work better

Asset Class Optimization:

Forex Majors:

• Standard settings work well across most pairs
• Optimize for trading sessions (London/NY best)
• Consider correlation when trading multiple pairs

Cryptocurrency:

• Higher volatility requires increased DBX values (2.5-3.5)
• Larger R:R ratios achievable (2.5-4.0)
• Focus on major coins for better signal quality

Stocks:

• Avoid earnings periods or increase DBX sensitivity
• Regular hours performance typically better than pre/post market
• Sector correlation consideration important

Testing and Validation Protocol:

A/B Testing Method:

1. Run current settings for 2-4 weeks, document performance
2. Change one parameter based on AI recommendation
3. Test new settings for 2-4 weeks with same market conditions
4. Compare results objectively (win rate, PnL, drawdown)
5. Keep better performing settings, revert if worse

Performance Metrics to Track:

• Win rate percentage (target: >55% for combinations, >65% for single signals)
• Average profit per trade (should increase with higher R:R)
• Maximum drawdown (should stay within comfort zone)
• Signal frequency (should match your trading availability)

When to Re-optimize:

• Monthly performance review – check if still meeting targets
• Major market condition changes (trending to ranging, volatility shifts)
• Trading style evolution (as you gain experience)
• Asset class changes (switching from forex to crypto, etc.)