Filters Settings

These settings control the filtering mechanisms of the Lorentzian Classification model. They help refine signals by applying various technical filters like moving averages, volatility conditions, and trend strength measurements.

Interactive Settings Explorer

Below is an interactive exploration of the Filter Settings interface. Click any setting to instantly view its detailed documentation, default value, and purpose - a quick alternative to scrolling through the full reference below:

Lorentzian Classification [2.06 - Beta]

Setting Help

Select a setting to view its help information

Detailed Settings Reference

Quick Reference Table

Filter	Default	Purpose	Key Parameter (Range)
Volatility Filter	True	Avoid quiet markets	ATR-based logic
Regime Filter	True	Trend vs. range detection	Threshold (-0.5–0.5)
ADX Filter	False	Trend strength confirmation	ADX (15–25)
EMA Filter	False	Align with short-term momentum	Period (20–100)
SMA Filter	False	Long-term directional bias	Period (50–200)
Daily Kernel	False	Higher timeframe confluence	Uses daily trend

Moving Average Filters

EMA Filter

Default: false

PURPOSE
Applies an EMA-based trend filter to signals, ignoring trades outside the EMA direction.

IMPACT
Filters out trades that conflict with short-term trend direction.

RECOMMENDATIONS

Enable for trend-following strategies
Combine with volatility filter
Adjust EMA period to match your timeframe

SMA Filter

Default: false

PURPOSE
Applies an SMA-based filter for higher-level trend validation.

IMPACT
Filters out trades that conflict with a slower, more stable trend measure.

RECOMMENDATIONS

Use for swing trading or longer timeframes
Combine with fast EMA or ADX filters
Consider 200 SMA for major trend identification

Market Condition Filters

Volatility Filter

Default: true

PURPOSE
Avoids trading in low-volatility conditions that can produce choppy signals.

IMPACT
Helps skip periods where price moves are weak or range-bound.

RECOMMENDATIONS

Keep enabled for most strategies
Especially useful in momentum trading
Disable in steady, range-bound markets if you prefer mean reversion

Technical Detail

The volatility filter helps avoid choppy market conditions where signals may be less reliable. It's especially useful in ranging markets.

Regime Filter

Default: true

PURPOSE
Distinguishes trending vs. ranging environments using a threshold-based logic.

IMPACT
Prevents applying trend-following logic in sideways conditions.

RECOMMENDATIONS

Crucial if your strategy performs poorly in chop
Adjust threshold for faster or slower detection
Start with 0.1 and adjust based on market

Trend Strength Filters

ADX Filter

Default: false

PURPOSE
Checks ADX to ensure sufficient trend strength before entering trades.

IMPACT
Skipping trades when ADX is below threshold can reduce false breakouts.

RECOMMENDATIONS

Enable if you only want strong trends
Combine with smaller threshold if your market is often volatile
Consider 20-25 range for standard trend detection

Multi-timeframe Filters

Daily Kernel Filter

Default: false

PURPOSE
Uses daily timeframe kernel logic to confirm signals on lower timeframes.

IMPACT
Ensures you only trade in harmony with big-picture daily trends or expansions.

RECOMMENDATIONS

Enable for multi-timeframe strategies
Useful for avoiding counter-trend trades
Consider computational impact on your platform

Filter Combinations

Understanding how different filters work together is key to optimizing your configuration:

EMA + Volatility: Great for trending markets
Regime + ADX: Excellent for avoiding choppy conditions
Daily Kernel + SMA: Strong multi-timeframe confluence
Volatility + ADX: Powerful for breakout validation

Why These Defaults?

Default values are chosen to offer a good balance between signal quality and quantity. They provide meaningful filtering while avoiding over-restriction of trading opportunities.

Summary

The filter settings provide multiple layers of signal refinement for the Lorentzian Classification model. While the defaults offer a solid starting point, understanding each filter's purpose allows you to create a custom configuration that matches your trading style and market conditions.

Try experimenting with the interactive demo above to see how different filter combinations affect signal generation. Each setting has detailed documentation that appears when you click on it in the interface.

Example Configurations

Conservative Trend Following:

Volatility Filter: True - Reasoning: Avoids trading in choppy, low-volatility environments, reducing the risk of false signals.
Regime Filter: True (Threshold: 0.1) - Reasoning: Confirms a trending market before entering trades, ensuring the model is operating in a favorable regime.
ADX Filter: True (Threshold: 25) - Reasoning: Ensures sufficient trend strength for reliable signals, filtering out weak or uncertain trends.
EMA Filter: True (Period: 50) - Reasoning: Aligns trades with short-term momentum, providing additional confirmation of the trend.
SMA Filter: True (Period: 200) - Reasoning: Validates trades with the long-term trend, ensuring alignment with the overall market direction.
Daily Kernel Filter: False - Reasoning: Focuses on the current timeframe without multi-timeframe confirmation, simplifying the analysis. This configuration is designed for Fixed Income/Conservative Traders who prioritize safety and trend alignment. It employs multiple filters to ensure that only high-probability, trend-aligned signals are generated, minimizing risk and false positives. The SMA and EMA filters align with long and short term trends, ADX ensures trend strength, and the Volatility and Regime filters avoid choppy markets. This setup is ideal for long-term investors or those with a low-risk tolerance.

Aggressive Scalping:

Volatility Filter: False - Reasoning: Allows trading in all market conditions, including low-volatility periods, to maximize signal frequency.
Regime Filter: True (Threshold: -0.2) - Reasoning: Captures even weak trends, suitable for scalping, where small price movements can be profitable.
ADX Filter: False - Reasoning: Disables trend strength confirmation for faster signal generation, allowing for quicker entries and exits.
EMA Filter: False - Reasoning: Removes short-term trend alignment for quicker entries, prioritizing speed over confirmation.
SMA Filter: False - Reasoning: Disables long-term trend validation for faster exits, essential for capturing small profits.
Daily Kernel Filter: False - Reasoning: Focuses solely on the current timeframe for scalping, ignoring higher timeframe context. This configuration is tailored for Alert Automation Users and Performance Tweakers focused on scalping strategies. It disables most filters to maximize signal frequency and responsiveness, prioritizing speed over signal quality. The Regime filter with a negative threshold is used to capture even weak trends, while the absence of other filters allows for quick entries and exits in fast-moving markets. This setup is best suited for experienced scalpers who can manage the increased risk of false signals and require a high volume of trades.

Multi-Timeframe Confluence:

Volatility Filter: True - Reasoning: Avoids trading in choppy, low-volatility environments, improving signal reliability.
Regime Filter: True (Threshold: 0.1) - Reasoning: Confirms a trending market before entering trades, ensuring the model operates in a favorable regime.
ADX Filter: False - Reasoning: Allows for signals even if the trend strength is not high on the current timeframe, providing more opportunities for entry.
EMA Filter: False - Reasoning: Avoids over-filtering and maintains responsiveness on lower timeframes, allowing for quicker reactions to price movements.
SMA Filter: False - Reasoning: Avoids over-filtering and maintains responsiveness on lower timeframes, prioritizing short-term opportunities.
Daily Kernel Filter: True - Reasoning: Ensures trades align with the higher timeframe (Daily) trend, providing a broader perspective on market direction. This configuration is designed for Visual Confluence Traders who seek confirmation from a higher timeframe before entering trades. It enables the Daily Kernel Filter to ensure that all signals align with the daily trend, providing a broader perspective on market direction. The Volatility and Regime filters help to avoid trading in choppy or ranging markets, while the SMA and EMA filters are disabled to maintain responsiveness on lower timeframes. This setup is ideal for traders who use Lorentzian Classification as a confluence tool to confirm their trading decisions based on higher timeframe analysis.

Interactive Settings Explorer​