# Optimization

The **Optimization Settings** panel provides control over how each analytical subsystem — **Market Waves**, **Core Toolkit**, and **Nautilus System** — interprets market data.

<div><figure><img src="/files/aLm1FILpyooonzyrHV70" alt=""><figcaption></figcaption></figure> <figure><img src="/files/YDFxkmcfH8G5Pcw1NooY" alt=""><figcaption></figcaption></figure> <figure><img src="/files/QQOQmqYLbuilDqPbhIiN" alt=""><figcaption></figcaption></figure> <figure><img src="/files/g8d2wQ4uJWZ6VISUDIzo" alt=""><figcaption></figcaption></figure></div>

These parameters directly affect signal generation accuracy, detection sensitivity, and backtest realism.\
Not all condition types include optimization inputs; only the components that rely on configurable sensitivity, timeframe, or detection logic provide adjustable parameters.

<details>

<summary>MARKET WAVES SETTINGS</summary>

These inputs refine the reaction speed and behavior of the Market Waves engine, affecting how it detects short- and long-term trend dynamics.

<div data-with-frame="true"><figure><img src="/files/JeyvmQrpM9C0QNie5rGS" alt=""><figcaption></figcaption></figure></div>

* [**Trend Signals (Sensitivity)**](/toolkits/market-waves-pro-tm/trend-signals.md#customization)\
  Adjusts how reactive the trend detection algorithm is.
  * Lower values = higher sensitivity, faster reaction to small swings.
  * Higher values = smoother, long-term trend interpretation.\
    Ideal for tuning trend-following vs. mean-reversion responsiveness.

* [**FlowTrend (Timeframe Source)**](/toolkits/market-waves-pro-tm/flow-trend.md#customization)\
  Defines the timeframe used for the higher-timeframe market flow calculation.

  * *Chart* — uses the current chart’s timeframe.

  <div data-gb-custom-block data-tag="hint" data-style="danger" class="hint hint-danger"><p>Selecting a <mark style="color:$warning;"><strong>lower timeframe</strong></mark> may cause <strong>repainting.</strong><br>For best accuracy, use a <em>higher timeframe</em> (e.g., 1H flow on a 15M chart) to maintain realistic, non-repainting signal behavior.</p></div>

* [TrendMagnet](/toolkits/market-waves-pro-tm/trendmagnet.md)\
  Adjusts how reactive the trend detection algorithm is.
  * Scalp = higher sensitivity, faster reaction to small swings. &#x20;
  * Macro = smoother, long-term trend interpretation.\
    Ideal for tuning trend-following vs. mean-reversion responsiveness.

* [VectorShift](/toolkits/market-waves-pro-tm/vectorshift.md)\
  Adjusts how reactive the trend detection algorithm is.

  * Scalp = higher sensitivity, faster reaction to small swings. &#x20;
  * Macro = smoother, long-term trend interpretation.\
    Ideal for tuning trend-following vs. mean-reversion responsiveness.

* [**Candlestick Patterns**](/toolkits/market-core-pro-tm/chart-patterns.md#customization)\
  Chooses which candlestick setups are considered valid triggers for pattern-based conditions.\
  Options include *All*, *Hammer*, *Engulfing*, *Doji*, *Star*, *Harami*, *Tweezer Top/Bottom*, etc.

</details>

<details>

<summary>MARKET CORE SETTINGS</summary>

These parameters control the precision and complexity of market structure and price-action components.

<figure><img src="/files/nOeAFgIFbYVsZhmDPcfP" alt=""><figcaption></figcaption></figure>

#### **Market Structure – Length**

Defines the swing lookback used to identify structural highs and lows.\
Longer lengths reduce noise but may delay structure changes.

#### **Order Blocks**

* *Use Last:* Specifies how many recent Order Blocks are considered in logic.
* *Macro Blocks:* Enables higher-timeframe (macro) block detection for institutional context.

#### **Fair Value Gaps (FVG)**

* *Use Last:* Limits the number of recent gaps used in detection logic.
* *FVG Threshold:* Sets the minimum required size (in ticks or %) for a valid gap.

#### **Swing Failure Pattern (SFP)**

* *Length:* Defines how many bars are used to confirm local swing highs/lows.
* *Threshold:* Sets the minimum volume or strength required for SFP validation.\
  These filters ensure only significant liquidity sweeps are recognized.

#### **Support / Resistance**

* *Sensitivity:* Controls how tightly the algorithm reacts to local pivot levels.
* *Strength:* Determines how many price interactions validate a level as strong support/resistance.

#### **Channels / Wedges**

* *Channels:* Sets the detection range (Small → Macro) for parallel channel formation.
* *Wedges:* Sets the detection range (Small → Macro) for parallel channel formation.

#### **Liquidity Grab**

* *Length:* Specifies how many bars are evaluated to detect liquidity sweeps above highs or below lows.

#### **Liquidity Magnets**

* **Mitigation**: Controls how zones react once price interacts with them (e.g., close-based interaction or wicks).

#### **BigBeluga Liquidity**

* **Sensitivity**: Controls how reactive liquidity zone detection is.\
  Lower values show more zones, higher values focus on the most significant ones<mark style="color:$info;">.</mark>

#### **Session**

* *UTC Offset:* Adjusts the session time zone relative to UTC.
* *Session Range:* Defines the intraday session window (e.g., 08:00–08:45) used for breakout analysis.

</details>

<details>

<summary>NAUTILUS SETTINGS</summary>

The **Nautilus System** offers preset profiles optimized for different trading styles, balancing reactivity and smoothness of oscillator-based signals.

<div data-with-frame="true"><figure><img src="/files/qEn70eB6AYdhwcXRUZOl" alt=""><figcaption></figcaption></figure></div>

* **Trader Preset**\
  Select between **Scalper**, **Day Trader**, and **Swing Trader** profiles:
  * *Scalper:* Highest reactivity, fast signal turnover for lower timeframes.
  * *Day Trader:* Balanced responsiveness, suitable for intraday directional plays.
  * *Swing Trader:* Smooth long-cycle detection, ideal for larger market phases.

Each preset automatically adjusts core Nautilus parameters such as oscillator length, peak detection sensitivity, and divergence threshold.

</details>

<details>

<summary>FILTERS SETTINGS</summary>

<figure><img src="/files/YDFxkmcfH8G5Pcw1NooY" alt=""><figcaption></figcaption></figure>

#### Moving Average Settings

* SMA Length (Simple Moving Average): Defines the lookback period for the SMA. A higher value creates a smoother, slower trend line, while a lower value reacts more quickly to price changes.
* EMA Length (Exponential Moving Average): Sets the period for the EMA. Because the EMA places more weight on recent price data, it is often used for identifying short-term trend shifts.
* HMA Length (Hull Moving Average): Adjusts the period for the Hull Moving Average. The HMA is designed to reduce lag while simultaneously improving smoothness, making it an excellent filter for high-volatility assets.

#### RSI (Relative Strength Index)

* Length: The lookback period (e.g., 14) used to calculate price momentum.
* OB (Overbought): The upper threshold (e.g., 60). When RSI is above this value, the market is considered extended.
* OS (Oversold): The lower threshold (e.g., 40). When RSI is below this value, the market is considered compressed.

#### MFI (Money Flow Index)

The MFI is often called "Volume-Weighted RSI." It uses both price and volume to measure buying and selling pressure.

* Length: The period used to calculate money flow.
* OB (Overbought): The threshold (e.g., 60) indicating excessive buying volume.
* OS (Oversold): The threshold (e.g., 40) indicating excessive selling volume.

</details>

The **Optimization Settings** define how deeply the BigBeluga Backtester analyzes market structure, trend, and momentum.\
By fine-tuning these parameters, traders can replicate any market condition — from volatile scalping environments to multi-day trend phases — and ensure every test reflects realistic system behavior.

These inputs bridge discretion and data: turning high-level concepts into precisely adjustable, backtestable models that evolve with market dynamics.


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