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.

This prevents the strategy from taking reversal trades directly into strong directional momentum.

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

Every trade has defined risk parameters:

• Take Profit: 8 points from entry

• Stop Loss: 33 points from entry

The wider stop accommodates NQ's higher volatility compared to ES, giving trades room to work while the tighter profit target captures gains quickly.

Position Sizing

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