Plain-language definitions for the terms used throughout the LORENTZIAN docs and site.
The Brain
LORENTZIAN’s standalone AI decision engine. It runs as its own local process alongside MT4 — every chart you attach the EA to connects to the same shared instance, which scores each setup using the indicator pipeline, Lorentzian KNN, and a neural-net second opinion, then checks the result against the Black Book before it ever lets a trade through.
Black Book
The Brain’s memory of its own losing trades. Every trade that closes at a loss gets fingerprinted — the exact market pattern that led to it — and stored in a file dedicated to that symbol and timeframe. See a near-identical setup again, and the Brain silently vetoes it, even if every other check says go.
Backtest-to-live teaching
The workflow of running LORENTZIAN through historical data in MT4’s Strategy Tester first, so it fingerprints mistakes it would have made on that data into an isolated backtest memory — then merging those lessons into the live Black Book before you ever risk real money. See the full walkthrough in Teaching the System with Backtests.
Lorentzian KNN
The core pattern-matching algorithm The Brain uses to score a setup. It searches a symbol’s price history for the 15 historical moments that most closely resemble the current one (using Lorentzian distance rather than plain Euclidean distance, which handles market-data outliers better), and checks what price actually did after each one.
EA (Expert Advisor)
MetaTrader 4’s term for an automated trading program. LORENTZIAN’s EA (LorentzianBot Scalp) handles order execution, position management, and risk controls on the MT4 side — it is the « hands, » while The Brain is the « mind » that decides what to do.
Drawdown breaker
An account-wide circuit breaker: if equity ever drops a configured percentage from balance, every open position force-closes and new entries pause for a cooldown period. It runs independently of every other setting, including the grid system.
Grid (grid system)
An optional feature where the EA can add to a losing position rather than closing it outright, once price moves a configured distance against an open trade. Grid-style averaging increases exposure the longer an adverse move continues, which is why it is designed to work alongside the drawdown breaker and concurrent-pairs limit, not as a substitute for them.
Concurrent pairs limit
A cap on how many different symbols can hold open positions at the same time, independent of how many charts are running. Keeps exposure from scaling unchecked as you add more charts.
VPS (Virtual Private Server)
A remote always-on computer most users run LORENTZIAN on, since both MT4 and The Brain need to be running continuously for the system to watch charts and place trades — a VPS keeps it online without needing your own PC on 24/7.
SL / TP
Stop-Loss and Take-Profit — the price levels at which a losing or winning trade automatically closes, set at your configured distance every time the EA opens a position.