The idea is once a month finishes we will try to forecast the weekly direction of the pair. First, we won't swim against the tide, meaning we are not going to fight the monthly trend. For instance, December finished with the start of a bullish trend (stronger euro) and during February we only received bearish weekly signals, so no trade was done. Second, we need some "room" to go back to the mean, therefore the price should be a little bit far from the Kalman line. And last, the stop loss range is going to be similar to the initial target.
We hope you enjoy it and learn with us.
Update: February finished with a bear signal (USD stronger).