Lux Bot

What is Lux Bot?

The Lux Bot is an automated trading system designed for the Nasdaq-100 futures (NQ) on 10-minute timeframes. It combines momentum reversal signals with multi-timeframe trend filtering and includes built-in drawdown protection to prevent catastrophic losing streaks.

Core Concept

This strategy focuses on catching momentum reversals while respecting the broader trend. The key differentiator is its drawdown protection system - automatic safeguards that pause trading when losses accumulate, protecting capital during unfavorable market conditions.

How It Works

Turbo Filter (Multi-Timeframe Momentum)

The Turbo system analyzes momentum across three timeframes simultaneously. When all three agree on direction, the market is in "Turbo Mode" - either Turbo Bull or Turbo Bear.

• Turbo Bull: All timeframes show bullish momentum. Short entries are blocked.
• Turbo Bear: All timeframes show bearish momentum. Long entries are blocked.
• Neutral: Timeframes disagree. No filtering applied.

Reversal Signals

Entry signals are generated using a proprietary reversal indicator which avoids fighting multi timeframe trends.

Drawdown Protection

The strategy includes two layers of automatic protection:

• Daily Loss Limit: If cumulative losses for the day exceed $200, all trading stops until the next session. This prevents a bad day from becoming a disaster.
• Consecutive Loss Pause: After 3 losing trades in a row, the strategy pauses. This breaks the cycle of revenge trading and forces a reset before continuing.

Both protections reset at the start of each new trading day.

Time-Based Trading Rules

The strategy enforces strict time windows:

• Daily Close at 3:55 PM ET: All positions are closed before the end of the regular session.
• No-Trade Window (3:55 PM - 5:00 PM ET): No new entries during this period to avoid the volatility and thin liquidity around session transitions.

Risk Management

• Take Profit: 8 points from entry
• Stop Loss: 33 points from entry

Position Sizing

The strategy uses a fixed 2-contract size per trade, keeping risk consistent across all entries.