The first two weeks were about mindset and your mix. This week you sit in the cockpit. We’ll read a real LumiTrade setup together — across timeframes, with your risk capped, and your exit decided before you ever click buy.
You don’t need to stare at charts all day. The LumiTrade dashboard scans the market and hands you a setup: a specific idea with the numbers already worked out. Your job isn’t to find the trade from scratch — it’s to read what the app surfaces and decide whether to take it. Every setup arrives with the risk defined in advance, which is the whole game.
Open the dashboard on one screen and this lesson on another. We’ll point at each part in turn.
Here’s a setup the scanner produced. Don’t worry about every detail yet — notice the shape of it: a ticker, a couple of timeframe controls up top, a max risk number, and three price levels — an entry, a target, and a stop. Those are the pieces we’ll unpack.
At the top of the setup you pick a mode — and each mode loads a matched stack of three timeframes that decides which lens the app scans through:
You don’t mix random timeframes — each stack is three neighbors, roughly 4× apart, so they all describe the same move at different zoom levels. Pick the mode that matches how long you intend to hold; the higher timeframes set the trend, the lowest times your entry.
This is multiple-timeframe analysis, and it’s worth its own page: read the big picture first, then zoom in to time your entry. Don’t fight the higher timeframe.
The full walkthrough of top-down analysis — and how the dashboard’s multi-timeframe price table assembles it for you.
See the Max Risk Per Trade field — say $20. That’s the most you’re willing to lose on this single idea if it goes against you. Not the amount you’re investing — the amount you’re risking. This one number is what keeps any single trade from hurting you, exactly like the position-sizing habit from Week 2.
Once you set your max risk, the app works backwards to figure out how many shares that allows, given where your stop is. Risk first, size second — never the other way around.
The Risk Management toolkit has a Position-Size calculator and a drawdown simulator — plug in your own numbers.
This is the heart of it. Every setup gives you three price levels — and all three are set before you enter. That’s what “risk defined in advance” actually means: you know your exit, in both directions, before you commit a dollar.
The gap from entry to stop is your risk. The gap from entry to target is your reward. Divide one by the other and you get the reward-to-risk ratio — the single number that tells you whether a trade is even worth taking.
(Target − Entry) ÷ (Entry − Stop)A setup that risks $1 to make $2 is a 2:1 — exactly the kind of math from Week 2. The dashboard shows this readout for you, alongside the Direction, Duration, Momentum and Shares in the trade parameters, so you can judge the trade at a glance.
The Trade Setups & Execution page has a reward-to-risk calculator and a setup visualizer — build a trade and watch the ratio update.