๐ฏ Overview
The Combined Signal system uses a sophisticated weighted scoring algorithm to combine 15+ technical indicators into high-confidence trading signals. Unlike simple indicator counting, our weighted system assigns priority levels to each signal based on its predictive power and reliability.
Key Features
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15 Technical Indicators working in harmony
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Weighted Scoring System (0-202 total weight)
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Dynamic Confidence Calculation with regime modifiers
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Conflict Detection to avoid mixed signals
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Configurable for any timeframe (1m to 1d+)
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Trading style optimization (scalp, day, swing, long-term)
๐ Signal Weight Hierarchy
Tier 1: Priority Signals (15-25 weight each)
High-conviction signals that work across all market conditions.
| Signal | Weight | Purpose |
|---|---|---|
| MTF Alignment | 25 | Multi-timeframe trend confirmation |
| CVD | 22 | True volume pressure (buy/sell) |
| VWAP | 20 | Institutional reference price |
| OFI | 18 | Order flow imbalance (smart money) |
| Ichimoku | 16 | Comprehensive trend system |
| RS vs BTC | 15 | Crypto-specific capital rotation |
Total Tier 1 Weight: 116
Tier 2: Core Indicators (12-15 weight each)
Proven technical indicators with strong track records.
| Signal | Weight | Purpose |
|---|---|---|
| RSI Divergence | 15 | Reversal detection |
| MACD | 12 | Trend confirmation |
| RSI Extreme | 12 | Overbought/oversold |
Total Tier 2 Weight: 39
Tier 3: Supporting Indicators (8-10 weight each)
Confirmation and validation signals.
| Signal | Weight | Purpose |
|---|---|---|
| Bollinger Bands | 10 | Mean reversion |
| Volume | 10 | Volume confirmation |
| Momentum | 8 | Velocity measurement |
Total Tier 3 Weight: 28
Tier 4: Context Filters (5-8 weight each)
Market condition assessments.
| Signal | Weight | Purpose |
|---|---|---|
| Market Regime | 8 | Trending vs ranging detection |
| Choppiness Index | 6 | Trend quality filter |
| ATR | 5 | Volatility context |
Total Tier 4 Weight: 19
๐ฏ Total System Weight: 202
โ๏ธ How the Weighted System Works
- Signal Collection
Each enabled indicator is checked independently. When a signal is detected, it contributes its weight to either BUY or SELL direction. - Weight Calculation
Example BUY Signal:
- MTF Bullish (25) + CVD Bullish (22) + VWAP Bounce (20) = 67 weight - Not enough for default threshold of 70
- Threshold Comparison
If total_weight >= minimum_weight_threshold:
Generate combined signal
- Confidence Calculation
confidence = (weighted_avg_confidence + regime_modifier + weight_bonus - conflict_penalty)
Components:
- Weighted Average: Each signal's confidence ร its weight
- Regime Modifier: +10% in trending, -5% in ranging
- Weight Bonus: Higher total weight = higher confidence
- Conflict Penalty: -15% per conflicting signal
๐ฎ Configuration Guide
Basic Settings
enable_combined_signals: true # Enable the system use_weighted_scoring: true # Use weighted (recommended) minimum_weight_threshold: 85.0 # Adjust based on strategy confidence_calculation_method: "weighted_average"
Threshold Guidelines by Trading Style
| Style | Threshold | Frequency | Risk Level |
|---|---|---|---|
| Very Conservative | 95-100 | Very Low | Very Low |
| Conservative | 85-95 | Low | Low |
| Balanced | 75-85 | Medium | Medium |
| Aggressive | 65-75 | High | High |
| Very Aggressive | 55-65 | Very High | Very High |
๐ Optimized Configurations by Trading Style
1. SCALPING (1m - 5m timeframes)
Goal: Quick entries/exits with high frequency
# Combined Signals - SCALPING enable_combined_signals: true use_weighted_scoring: true minimum_weight_threshold: 70.0 # Lower for more signals # Signal Weights - Favor fast indicators signal_weights: mtf_weight: 20.0 # Reduced (slower signal) cvd_weight: 25.0 # Increased (fast volume) vwap_weight: 22.0 # Increased (intraday key) ofi_weight: 20.0 # Increased (order flow edge) ichimoku_weight: 12.0 # Reduced (slower) rs_btc_weight: 10.0 # Reduced (not relevant short-term) rsi_divergence_weight: 15.0 macd_weight: 10.0 # Reduced (lags) rsi_weight: 15.0 # Increased (fast) bollinger_weight: 12.0 # Increased (volatility) volume_weight: 12.0 # Increased (critical) momentum_weight: 10.0 regime_weight: 5.0 # Reduced choppiness_weight: 8.0 # Increased (avoid chop) atr_weight: 6.0 # Timeframe Settings mtf_short_term_period: 5 # Faster mtf_medium_term_period: 15 mtf_long_term_period: 30 mtf_min_alignment_score: 0.6 # Lower threshold # Risk Management regime_confidence_modifier: true choppiness_confidence_modifier: true conflicting_signals_penalty: 20.0 # Higher penalty
Recommended Klines:
- 1m: Ultra-fast scalping (high risk)
- 3m: Fast scalping (balanced)
- 5m: Standard scalping (recommended)
2. DAY TRADING (5m - 30m timeframes)
Goal: Capture intraday moves with solid confirmation
# Combined Signals - DAY TRADING enable_combined_signals: true use_weighted_scoring: true minimum_weight_threshold: 80.0 # Balanced approach # Signal Weights - Balanced distribution signal_weights: mtf_weight: 25.0 # Full weight cvd_weight: 22.0 vwap_weight: 20.0 ofi_weight: 18.0 ichimoku_weight: 16.0 rs_btc_weight: 15.0 rsi_divergence_weight: 15.0 macd_weight: 12.0 rsi_weight: 12.0 bollinger_weight: 10.0 volume_weight: 10.0 momentum_weight: 8.0 regime_weight: 8.0 choppiness_weight: 6.0 atr_weight: 5.0 # Timeframe Settings (Default) mtf_short_term_period: 10 mtf_medium_term_period: 30 mtf_long_term_period: 50 mtf_min_alignment_score: 0.8 # Risk Management regime_confidence_modifier: true regime_trending_boost: 10.0 regime_ranging_penalty: 5.0 conflicting_signals_penalty: 15.0
Recommended Klines:
- 5m: Short-term day trades
- 15m: Standard day trading (recommended)
- 30m: Swing-style day trades
3. SWING TRADING (1h - 4h timeframes)
Goal: Multi-day positions with strong trend confirmation
# Combined Signals - SWING TRADING enable_combined_signals: true use_weighted_scoring: true minimum_weight_threshold: 85.0 # Higher quality # Signal Weights - Favor trend signals signal_weights: mtf_weight: 28.0 # Increased (trend key) cvd_weight: 20.0 # Reduced (less critical) vwap_weight: 18.0 # Reduced ofi_weight: 15.0 # Reduced ichimoku_weight: 20.0 # Increased (trend system) rs_btc_weight: 18.0 # Increased (important) rsi_divergence_weight: 16.0 # Increased (reversals) macd_weight: 15.0 # Increased (trend) rsi_weight: 10.0 # Reduced bollinger_weight: 8.0 # Reduced volume_weight: 10.0 momentum_weight: 10.0 # Increased regime_weight: 10.0 # Increased choppiness_weight: 8.0 # Increased atr_weight: 6.0 # Timeframe Settings - Longer periods mtf_short_term_period: 20 mtf_medium_term_period: 50 mtf_long_term_period: 100 mtf_min_alignment_score: 0.8 # Risk Management regime_confidence_modifier: true regime_trending_boost: 15.0 # Higher boost regime_ranging_penalty: 10.0 # Higher penalty filter_signals_by_choppiness: true disable_reversal_in_trending: true
Recommended Klines:
- 1h: Standard swing trading (recommended)
- 2h: Slower swing trades
- 4h: Multi-day swings
4. POSITION/LONG-TERM (4h - 1d timeframes)
Goal: Long-term holds with maximum conviction
# Combined Signals - POSITION TRADING enable_combined_signals: true use_weighted_scoring: true minimum_weight_threshold: 95.0 # Very high quality # Signal Weights - Maximum trend focus signal_weights: mtf_weight: 30.0 # Maximum cvd_weight: 18.0 vwap_weight: 15.0 ofi_weight: 12.0 ichimoku_weight: 25.0 # Maximum (trend) rs_btc_weight: 20.0 # Maximum (fundamentals) rsi_divergence_weight: 18.0 macd_weight: 18.0 # Maximum (trend) rsi_weight: 8.0 bollinger_weight: 6.0 volume_weight: 8.0 momentum_weight: 12.0 regime_weight: 12.0 # Maximum choppiness_weight: 10.0 # Maximum atr_weight: 4.0 # Timeframe Settings - Very long periods mtf_short_term_period: 30 mtf_medium_term_period: 100 mtf_long_term_period: 200 mtf_min_alignment_score: 0.9 # Very strict # Risk Management regime_confidence_modifier: true regime_trending_boost: 20.0 # Maximum boost regime_ranging_penalty: 15.0 # Maximum penalty filter_signals_by_choppiness: true disable_reversal_in_trending: true mtf_only_strong_alignment: true ichimoku_require_cloud_confirm: true
Recommended Klines:
- 4h: Position trading entry
- 6h: Long-term positions
- 1d: Investment-grade signals (recommended)
๐ง Kline-Specific Optimizations
1 Minute (1m) - Ultra High Frequency
minimum_weight_threshold: 65.0 mtf_short_term_period: 3 mtf_medium_term_period: 10 mtf_long_term_period: 20 ofi_weight: 22.0 # Critical vwap_weight: 25.0 # Critical choppiness_weight: 10.0 # Avoid chop
3 Minute (3m) - High Frequency
minimum_weight_threshold: 70.0 mtf_short_term_period: 5 mtf_medium_term_period: 15 mtf_long_term_period: 30
5 Minute (5m) - Scalping Standard
minimum_weight_threshold: 75.0 mtf_short_term_period: 5 mtf_medium_term_period: 20 mtf_long_term_period: 40
15 Minute (15m) - Day Trading Standard
minimum_weight_threshold: 80.0 mtf_short_term_period: 10 mtf_medium_term_period: 30 mtf_long_term_period: 50 # Use default weights (balanced)
30 Minute (30m) - Short Swing
minimum_weight_threshold: 82.0 mtf_short_term_period: 15 mtf_medium_term_period: 40 mtf_long_term_period: 80
1 Hour (1h) - Swing Trading Standard
minimum_weight_threshold: 85.0 mtf_short_term_period: 20 mtf_medium_term_period: 50 mtf_long_term_period: 100 ichimoku_weight: 20.0 # Increased mtf_weight: 28.0 # Increased
2 Hour (2h) - Medium Swing
minimum_weight_threshold: 87.0 mtf_short_term_period: 25 mtf_medium_term_period: 60 mtf_long_term_period: 120
4 Hour (4h) - Position Entry
minimum_weight_threshold: 90.0 mtf_short_term_period: 30 mtf_medium_term_period: 75 mtf_long_term_period: 150 ichimoku_weight: 22.0 rs_btc_weight: 18.0
6 Hour (6h) - Long Position
minimum_weight_threshold: 92.0 mtf_short_term_period: 35 mtf_medium_term_period: 90 mtf_long_term_period: 180
1 Day (1d) - Investment Grade
minimum_weight_threshold: 95.0 mtf_short_term_period: 30 mtf_medium_term_period: 100 mtf_long_term_period: 200 mtf_min_alignment_score: 0.9 ichimoku_weight: 25.0 mtf_weight: 30.0 rs_btc_weight: 20.0
๐ Signal Combination Examples
Example 1: High-Conviction BUY (Weight: 103)
โ MTF Bullish Alignment (25) - All timeframes trending up โ Ichimoku Strong Bullish (16) - Above bullish cloud with TK cross โ CVD Bullish Divergence (22) - Hidden accumulation โ VWAP Lower Band Bounce (20) - Oversold vs institutional price โ RS_BTC Outperforming (15) - Capital flowing into asset โ Choppiness Breakout (6) - Breaking out of consolidation Total: 103 weight Threshold: 85 โ SIGNAL GENERATED Confidence: 87% (high weight + trending regime bonus)
Example 2: Medium-Conviction SELL (Weight: 78)
โ MACD Bearish Cross (12) - Trend weakening โ RSI Overbought (12) - Above 70 โ Bollinger Upper Band (10) - Price extended โ OFI Aggressive Selling (18) - Smart money exiting โ Volume Spike Sell (10) - Distribution detected โ Ichimoku TK Cross Bearish (16) - Momentum shift Total: 78 weight Threshold: 85 โ SIGNAL NOT GENERATED Reason: Below threshold (need 7 more weight points)
Example 3: Conflicting Signals (No Signal)
BUY Signals: โ CVD Bullish (22) โ VWAP Bounce (20) โ RSI Oversold (12) Total BUY: 54 weight SELL Signals: โ MTF Bearish (25) โ Ichimoku Bearish (16) Total SELL: 41 weight Conflict Detected: SELL weight (41) > threshold (30) Penalty Applied: -15% confidence Result: NO SIGNAL (mixed market conditions)
๐ฏ Advanced Strategies
Strategy 1: Trend-Following Focus
Maximize trend signals, minimize mean reversion:
minimum_weight_threshold: 85.0 signal_weights: mtf_weight: 30.0 # Max ichimoku_weight: 25.0 # Max macd_weight: 18.0 # Increased rs_btc_weight: 20.0 # Max momentum_weight: 12.0 # Increased rsi_weight: 8.0 # Reduced bollinger_weight: 6.0 # Reduced filter_signals_by_regime: true disable_reversal_in_trending: true
Strategy 2: Mean Reversion Focus
Maximize reversal signals:
minimum_weight_threshold: 75.0 signal_weights: rsi_divergence_weight: 20.0 # Max rsi_weight: 15.0 # Increased bollinger_weight: 15.0 # Increased vwap_weight: 25.0 # Increased mtf_weight: 18.0 # Reduced ichimoku_weight: 12.0 # Reduced filter_signals_by_choppiness: true boost_reversal_signals_in_ranging: 15.0
Strategy 3: Volume-Based Focus
Prioritize order flow and volume:
minimum_weight_threshold: 80.0 signal_weights: cvd_weight: 28.0 # Max ofi_weight: 25.0 # Max volume_weight: 15.0 # Increased vwap_weight: 22.0 # Increased enable_confluence_bonuses: true ofi_cvd_confluence_boost: 10.0 # Extra bonus ofi_cvd_vwap_triple_boost: 15.0 # Triple confirmation
โ ๏ธ Common Pitfalls & Solutions
Problem 1: Too Many Signals
Symptom: Constant signals, low win rate
Solution: Increase minimum_weight_threshold by 5-10 points
Problem 2: Too Few Signals
Symptom: Missed opportunities, rare signals
Solution: Decrease minimum_weight_threshold by 5-10 points, or enable more indicators
Problem 3: False Signals in Choppy Markets
Symptom: Whipsaws, stop-outs
Solution:
filter_signals_by_choppiness: true choppiness_weight: 10.0 # Increase weight disable_trend_in_choppy: true
Problem 4: Lagging Entries
Symptom: Late to the move
Solution: Reduce MTF periods, increase fast indicator weights (OFI, CVD, RSI)
Problem 5: Poor Risk/Reward
Symptom: Small wins, big losses
Solution: Increase threshold, enable regime filtering, use higher timeframes
๐ Performance Optimization Checklist
Before Going Live:
- โ Backtest on your target timeframe (minimum 3 months)
- โ Adjust threshold based on desired signal frequency
- โ Enable appropriate filters (regime, choppiness)
- โ Set signal weights for your trading style
- โ Test in paper trading for 1-2 weeks
- โ Monitor conflict rate (should be < 20%)
- โ Track confidence scores (aim for 70%+ average)
- โ Review individual signal performance
Ongoing Monitoring:
- Weekly: Review signal frequency and win rate
- Monthly: Adjust weights based on performance
- Quarterly: Re-backtest with updated parameters
๐ Signal Weight Customization
How to Adjust Weights:
- Identify underperforming signals (low win rate)
- Reduce their weight by 2-5 points
- Identify outperforming signals (high win rate)
- Increase their weight by 2-5 points
- Keep total weight around 200-210
- Re-test for at least 50 trades
Example Optimization:
Initial: MTF=25, CVD=22, VWAP=20
After 100 trades: MTF 75% win rate, CVD 80% win rate, VWAP 55% win rate
Adjusted: MTF=28, CVD=25, VWAP=16
๐ Additional Resources
- Indicator Documentation
- Signal Backtesting: Use built-in performance tracking
- Community Strategies: Share optimized configs
- Support: Contact support for configuration assistance
๐ Quick Start Recommendations
- New to Combined Signals?
Start with Day Trading - 15m configuration (balanced, proven) - Experienced Trader?
Customize weights based on your backtesting results - High-Frequency Trader?
Use Scalping - 5m with increased OFI/CVD weights - Long-Term Investor?
Use Position - 1d with strict thresholds (95+)
Remember: The weighted system is powerful but requires proper configuration. Start conservative, backtest thoroughly, and adjust based on real performance data. ๐