As we noted earlier, the Lux Algo trading system has a built-in algorithm that analyzes the market on your behalf before sending you trading signals. This does not mean that the system will trade for you or will guarantee profits. Instead, all it does is send you trading signals that you can use to make your trading decisions.

As a trader, it is important for you to thoroughly and carefully analyze these signals before using your trading knowledge and experience to get the desired trading position. This system has Lux Algo v2, basically designed to work on TradingView. All you have to do is set it up based on your desired trading timeframe or instrument. For example, you can set timeframes from one minute to one week, or instruments like stocks, forex, indices, commodities, cryptocurrencies, etc.

Lux Algo v2 will give you the opportunity to combine your trading strategy. You can make a risk management plan. For example, it can be used for swing or day trading, as well as a ratio trading strategy. In essence, you can customize this system to allow you to implement a trading strategy and money management plan that suits your trading goals and preferences.

As a trader who has decided to use the Lux Algo system, we owe you our honesty in this review. Although the creators of the Lux Algo system want users like you to believe that the success rate of using this system is almost guaranteed, this is not true. In other words, there is no 100% guarantee that using the Lux Algo system will help you succeed in your trading endeavors. Instead, it just makes your job easier by providing trading signals. Which you will then have to analyze when making your trading decisions.

With that said, you must be aware that Lux Algo signals will only help you to hold trading positions and identify areas where you can profit, but this is not guaranteed. You must also note that Lux Algo does not offer automated trading. So you have full control over your trades as it is just a system to help you analyze the market.

Lux Algo provides us with a set of tools that allow us to create a multitude of unique trading strategies. The versatility of the indicators makes it possible to build strategies for different timeframes. The created methods can be used in trading on the stock market, forex, futures or cryptocurrencies. It is always good to match the parameters of the strategy to the financial trading market in which you are operating. The Lux Algo team across multiple communication channels assist traders in building their own investment strategies.

So let’s see what a sample strategy might look like. I applied two indicators to the 15 minute chart of BTC. First and foremost is Lux Algo Premium. The main task of this tool is to indicate the trend. The green candle shows that we are in an uptrend. A red candle indicates that there is a downtrend. The indicator colors the candle purple when there is a sideways trend. Lux Algo Premium also displays buy and sell signals. For further confirmation, I will use the ultimate MACD indicator, which is part of Lux Algo Oscillators Premium. The setting of this indicator will remain the default. I can use the standard MACD, but the standard MACD usually reacts later to market changes.

Signal to take a short position

The first thing we are waiting for is the appearance of a sell signal from the Lux Algo Premium indicator. If on the candle appears a signal, the MACD histogram turns from positive to negative, we have a short position. If the MACD histogram is already negative. We wait for it to return to the positive zone and wait until it turns negative and points to a short position.

Signal to take a long position

When the Lux Algo Premium buy signal appears, we also wait for confirmation from the MACD histogram. The histogram must simultaneously go from a negative value to a positive value. If it is already positive, we wait for the transition to the negative zone. We only buy when the chart turns positive again.

A trading strategy is incomplete if it does not include the conditions for exiting a position. As a preliminary stop loss order, we suggest for these signals to use the min or max price of the last 3 candles taking into account the candle on which the full signal is present. Of course, the SL level for a long position will be the minimum price and for a short position the maximum. Position can be actively managed by moving the defensive order. You can also pre-set a take profit, e.g. 2x risk. This way we guarantee a good risk/reward ratio.

The method we recommend gives automatic trading signals. All you have to do is read them skillfully. However, keep in mind that Lux products are not intended for automated trading. The strategy, once adjusted, can also be used on higher or lower timeframes depending on the trading style you practice. It can also be used in other financial markets.

Conclude

So we can confidently note that Lux Algo is a perfect system if you want to take your trading to the next level. However, this does not mean that using this system will guarantee profits.

Instead, it helps you analyze the market and gives you signals that you can use to your advantage. Of course, you must have knowledge of the market, although it can be used by both beginners and advanced traders.

It is also flexible enough and compatible with many trading platforms but works best with TradingView. It also allows you to use your own trading strategies.

On the other hand, the subscription fees are very expensive and there is no guarantee that using the trading signals provided by the system will lead to profit.

FAQ’s

DO YOU NEED TRADINGVIEW FOR LUX ALGO?

You do not need to upgrade to TradingView to use Lux Algo. As the toolkit is designed to work with TradingView’s basic plan.

DOES LUX ALGO WORK ON MOBILE DEVICES?

Absolutely, Lux Algo works on any device and you can see all the real-time data on any device. However, for a better view of charts, signals and other indicators. Viewing the platform from a desktop will give you a more vivid idea of ​​what is happening in the market. Therefore, we recommend using Lux Algo on desktop.

WHAT IS LUX ALGO?

Lux Algo’s resource page discusses over ten innovative market indicators carefully designed to help you spot the direction of the trend. Measure the performance of renowned institutions in the market, generate measured volatility on market price movements etc. Here are the main Lux Algo indicators and support and resistance modes.