Detailed descriptions of all DCMM parameters and indicators used in the market monitoring system.
TP90 is the 90th percentile take-profit target for next session, based on Historical Twins analysis. TP_year is the annual recovery target derived from full-cycle historical data. Together, they define the reward side of the R/R calculation for each DCMM setup.
P(Up D+1) is the probability of a next-day price recovery for a given stock in its current drawdown cycle stage, calculated from Historical Twins. It serves as the primary probability input for Kelly Criterion position sizing in the DCMM framework.
Historical Twins (Setups) are the statistical foundation of the QDSF Engine. They represent past market situations where the same stock exhibited identical drawdown cycle conditions — and what happened next. The setup count and probability matrix (ΣH+1 through ΣH+5) provide quantified, evidence-based trade probabilities.
The DD (Drawdown Cycle) parameter in DCMM measures the stage of a stock’s current price drawdown cycle — how many consecutive sessions it has been declining from its local peak. It is the primary entry filter for identifying mean-reversion setups.