Docs / Builder Guide: State Machine Block

Fusion Builder State Machine Block – User Guide

Version: 1.0 Last Updated: January 25, 2026 For: Fusion Builder V1.0

What is a State Machine Block?
When to Use State Machines
Creating Your First State Machine
Understanding the Properties Panel
Wiring Stage Inputs
Test Configurations
Real Trading Examples
Troubleshooting
Best Practices

1. What is a State Machine Block?

A State Machine Block allows you to build multi-step sequential entry logic visually – without writing any code.

The Core Concept

Think of it like a checklist that must be completed in order:

SCANNING  →  ARMED  →  CONFIRMED  →  ENTRY
   ↑           ↓           ↓          ↓
   └───────────┴───────────┴──────────┘
          (Timeout or Abort resets)

SCANNING – Waiting for the first condition
ARMED – First condition met, now waiting for second
CONFIRMED – Second condition met, waiting for final trigger
ENTRY – All conditions met → Signal fires!

Why This Matters

Without a State Machine, building “RSI drops below 30, THEN within 10 bars price touches support, THEN RSI crosses back above 30” would require 8+ blocks (SR Latches, Signal Extenders, AND gates, etc.).

With a State Machine: 1 block.

2. When to Use State Machines

✅ USE State Machine When:

Scenario	Example
Sequential conditions	“First X happens, then Y, then Z”
Timed windows	“Y must happen within 10 bars of X”
Complex entries	Breakout → Pullback → Continuation
Pattern completion	Divergence detection with confirmation
Multi-step filters	Volume spike → Reversal → Confirmation

❌ DON’T USE State Machine When:

Scenario	Better Alternative
Simple threshold crossing	Condition Block
Two conditions at same time	AND Gate
Either/or logic	OR Gate
Toggle between states	SR Latch or Toggle Gate

3. Creating Your First State Machine

Step 1: Add the Block

Open Fusion Builder
Click State Machine in the block toolbar
A State Machine block appears with default 3 stages

Step 2: Understand the Ports

INPUT PORTS (Left Side):

Port	Purpose
S1	Stage 1 trigger (ARM condition)
S2	Stage 2 trigger (CONFIRM condition)
S3	Stage 3 trigger (ENTRY condition)
S4-S6	Additional stages (when StageCount > 3)
Abort	Global reset trigger (optional)

OUTPUT PORTS (Right Side):

Port	Purpose
Signal	Fires when terminal stage reached (1.0 or -1.0)
State	Current state number (0-6) for debugging

Step 3: Configure Properties

Click the State Machine block to open the Properties Panel.

4. Understanding the Properties Panel

Signal Configuration

Property	What It Does	Options
Signal Name	Identifier for your state machine	Any text (e.g., “RSI_Bounce”)
Direction	Signal direction when entry fires	Long (+1), Short (-1), Both (±1)
Long Output	Value output for Long signals	Default: 1.0
Short Output	Value output for Short signals	Default: -1.0

Stages Section

Property	What It Does	Notes
Stage Count	How many stages (2-6)	Default: 3
Stage N Name	Label for the stage	Shows in block body
Timeout (bars)	Max bars to wait	0 = infinite (no timeout)
Reset on timeout	Return to Scanning if timeout	Usually ON

Abort Configuration

Property	What It Does
Enable Abort	Allow abort condition to reset	Shows/hides Abort port
Abort Resets To	Where to reset on abort	0=Scanning, 1-6=specific stage

Reset Behavior

Property	What It Does
Auto-reset after signal	Return to Scanning after signal fires
Reset Delay (bars)	Cooldown before re-arming

Visualization

Property	What It Does
Show state on block	Display current state on block body
Plot state output	Enable State output port

5. Wiring Stage Inputs

What Can Connect to Stage Ports?

Stage inputs expect a truthy value (non-zero, non-NaN):

Source Block	How to Wire
Condition Block	Wire output directly → S1/S2/S3
Gate Block	Wire output directly → S1/S2/S3
Indicator Block	Use with Condition to create true/false
Math Block	Use if result should trigger stage

Wiring Pattern

┌─────────────────┐
│ Condition Block │───► S1 (Arms when condition true)
│ "RSI < 30"      │
└─────────────────┘

┌─────────────────┐
│ Condition Block │───► S2 (Confirms when condition true)
│ "Price < LowerBB"│
└─────────────────┘

┌─────────────────┐
│ Condition Block │───► S3 (Entry triggers when condition true)
│ "RSI CrossAbove" │
└─────────────────┘

┌─────────────────┐
│ Condition Block │───► Abort (Resets entire state machine)
│ "RSI < 20"      │
└─────────────────┘

6. Test Configurations

Test 1: Basic 3-Stage State Machine

Purpose: Verify basic state transitions work

Setup:

Component	Configuration
Indicator 1	RSI(14)
Condition 1	RSI CrossBelow 30 → wire to S1
Condition 2	RSI CrossAbove 25 → wire to S2
Condition 3	RSI CrossAbove 30 → wire to S3
State Machine	StageCount=3, Stage1Timeout=0, Stage2Timeout=20, Stage3Timeout=10

Expected Behavior:

Block shows “Scanning” initially
When RSI crosses below 30 → Block shows “Armed”
When RSI crosses above 25 (within 20 bars) → Block shows “Confirmed”
When RSI crosses above 30 (within 10 bars) → Signal fires (1.0)
After signal → Block returns to “Scanning”

Verification:

Wire State output → Result Block to see state changes
Watch block body for state label updates

Test 2: Timeout Reset

Purpose: Verify timeout resets to Scanning

Setup:

Component	Configuration
Indicator 1	RSI(14)
Condition 1	RSI CrossBelow 30 → wire to S1
Condition 2	RSI CrossAbove 50 → wire to S2 (unlikely to trigger quickly)
State Machine	Stage1Timeout=0, Stage2Timeout=5

Expected Behavior:

RSI crosses below 30 → Armed
Wait 5+ bars without RSI crossing 50
Block resets to “Scanning” (timeout triggered)

Test 3: Abort Condition

Purpose: Verify abort resets state machine

Setup:

Component	Configuration
Indicator 1	RSI(14)
Condition 1	RSI CrossBelow 30 → wire to S1
Condition 2	RSI CrossAbove 30 → wire to S2
Condition 3	RSI > 25 → wire to S3
Condition 4	RSI < 20 → wire to Abort
State Machine	AbortEnabled=true, AbortResetsTo=0

Expected Behavior:

RSI crosses below 30 → Armed
RSI drops below 20 → Abort fires → Back to Scanning
(Even if S2/S3 would have triggered, abort takes priority)

Test 4: Reset Delay

Purpose: Verify cooldown prevents immediate re-arming

Setup:

Component	Configuration
Indicator 1	RSI(14)
Condition 1	RSI < 30 → wire to S1
Condition 2	RSI < 28 → wire to S2
Condition 3	RSI < 25 → wire to S3
State Machine	AutoResetAfterSignal=true, ResetDelayBars=3

Expected Behavior:

RSI drops below 30, 28, 25 rapidly → Signal fires
Block shows Scanning but won’t re-arm for 3 bars
After 3 bars, S1 can trigger again

Test 5: Direction “Both”

Purpose: Verify Both direction uses input sign

Setup:

Component	Configuration
Indicator 1	RSI(14)
Math Block	Subtract RSI from 50 (result positive if RSI<50, negative if RSI>50)
Condition 1	Abs(Result) > 20 → wire to S1 (signed value)
Condition 2	Abs(Result) > 15 → wire to S2
Condition 3	Abs(Result) > 10 → wire to S3 (pass the signed value)
State Machine	Direction=Both

Expected Behavior:

If final stage input is positive → Signal = +1.0 (Long)
If final stage input is negative → Signal = -1.0 (Short)

Test 6: Multi-Stage (5 Stages)

Purpose: Verify extended stage count works

Setup:

Component	Configuration
State Machine	StageCount=5
Condition 1	RSI < 40 → S1
Condition 2	RSI < 35 → S2
Condition 3	RSI < 30 → S3
Condition 4	RSI < 25 → S4
Condition 5	RSI CrossAbove 30 → S5

Expected Behavior:

Verify S4 and S5 ports are visible
State progresses through all 5 stages
Signal fires only after S5 triggers

7. Real Trading Examples

Example 1: RSI Oversold Bounce

The Pattern:

Wait for RSI < 30 (market is oversold)
Within 10 bars, price touches lower Bollinger Band
Within 5 bars, RSI crosses back above 30
If RSI drops below 20 (extreme oversold), cancel

Block Configuration:

┌────────────────────────────────────────────────────┐
│ INDICATOR: RSI(14)                                  │
│ INDICATOR: Bollinger(20,2)                          │
│                                                     │
│ CONDITION: RSI < 30              ────► S1 (Armed)   │
│ CONDITION: Close < LowerBB       ────► S2 (Confirm) │
│ CONDITION: RSI CrossAbove 30     ────► S3 (Entry)   │
│ CONDITION: RSI < 20              ────► Abort        │
│                                                     │
│ STATE MACHINE SETTINGS:                             │
│   Stage1Timeout = 0 (wait forever)                  │
│   Stage2Timeout = 10 bars                           │
│   Stage3Timeout = 5 bars                            │
│   Direction = Long                                   │
└────────────────────────────────────────────────────┘

Example 2: Breakout-Pullback-Continuation

The Pattern:

Price breaks above 20-bar high (breakout)
Within 15 bars, price pulls back to 50% of breakout move
Within 10 bars, price makes new high

Block Configuration:

┌────────────────────────────────────────────────────┐
│ INDICATOR: Highest(High, 20)                        │
│ INDICATOR: Lowest(Low, 20)                          │
│                                                     │
│ CONDITION: Close > Highest[1]    ────► S1 (Breakout)│
│ CONDITION: Low < Midpoint        ────► S2 (Pullback)│
│ CONDITION: High > Recent High    ────► S3 (Continue)│
│                                                     │
│ STATE MACHINE SETTINGS:                             │
│   Stage1Timeout = 0                                 │
│   Stage2Timeout = 15 bars                           │
│   Stage3Timeout = 10 bars                           │
│   Direction = Long                                   │
└────────────────────────────────────────────────────┘

Example 3: Volume Climax Reversal

The Pattern:

Volume spike > 2x average (climax)
Within 3 bars, price reverses (close > open after down move)
Within 5 bars, volume returns to normal

Block Configuration:

┌────────────────────────────────────────────────────┐
│ INDICATOR: SMA(Volume, 20)                          │
│ MATH: Divide Volume by SMA(Volume)                  │
│                                                     │
│ CONDITION: VolRatio > 2.0        ────► S1 (Climax)  │
│ CONDITION: Close > Open          ────► S2 (Reversal)│
│ CONDITION: VolRatio < 1.5        ────► S3 (Normal)  │
│ CONDITION: VolRatio > 2.0        ────► Abort        │
│                                                     │
│ STATE MACHINE SETTINGS:                             │
│   Stage1Timeout = 0                                 │
│   Stage2Timeout = 3 bars                            │
│   Stage3Timeout = 5 bars                            │
│   ResetDelayBars = 5 (prevent rapid re-triggers)    │
└────────────────────────────────────────────────────┘

8. Troubleshooting

State Machine Won’t Advance

Symptom	Cause	Solution
Stuck on “Scanning”	S1 condition never fires	Check S1 wiring, verify condition logic
Stuck on “Armed”	S2 condition not firing	Check Stage2Timeout, verify S2 wiring
Timeout keeps resetting	Timeout too short	Increase timeout value

Signal Never Fires

Symptom	Cause	Solution
Reaches terminal stage but no signal	Direction mismatch	Check SignalDirection setting
Final condition fires but stays at 0	AutoReset issue	Verify AutoResetAfterSignal

Abort Keeps Triggering

Symptom	Cause	Solution
State resets unexpectedly	Abort condition too sensitive	Adjust Abort condition thresholds
	Abort firing during normal progression	Disable AbortEnabled temporarily

Block Shows Wrong State

Symptom	Cause	Solution
Display doesn’t update	ShowStateOnBlockBody=false	Enable in properties
State number seems wrong	Counting from 0	0=Scanning, 1=Stage1, etc.

9. Best Practices

DO:

Start simple – Use 3 stages first, add complexity later
Use meaningful names – “Armed”, “Pullback”, “Entry” instead of “Stage1”
Set appropriate timeouts – Too short = miss signals, too long = stale setups
Test each stage independently – Wire State output to Result block for debugging
Use abort conditions – Protect against adverse market conditions

DON’T:

Don’t chain State Machines – They’re designed to be self-contained
Don’t use 6 stages unless necessary – More stages = more ways to fail
Don’t set all timeouts to 0 – You’ll never get signals during choppy markets
Don’t forget reset delay – Prevents machine-gun signals in volatile conditions

Timeout Guidelines

Market Condition	Recommended Timeout
Scalping (1-5 min)	3-10 bars
Day Trading (15-60 min)	5-20 bars
Swing Trading (Daily)	3-10 bars
Position Trading (Weekly)	2-5 bars

Quick Reference Card

State Numbers

Number	State	Meaning
0	Scanning	Waiting for first condition
1	Armed	S1 fired, waiting for S2
2	Confirmed	S2 fired, waiting for S3
3-6	Stage 3-6	Additional stages if configured

Signal Values

Direction	Output
Long	+1.0 (default, configurable)
Short	-1.0 (default, configurable)
Both	Sign determined by final stage input

Port Summary

Port	Type	Purpose
S1-S6	Input	Stage trigger conditions
Abort	Input	Global reset condition
Signal	Output	Entry signal (1.0/-1.0)
State	Output	Current state number (0-6)

Appendix: Comparison with Traditional Approach

Traditional (8+ blocks):

RSI < 30 → SR Latch (Set)
         → SignalExtender (10 bars)
         → AND Gate ← LowerBB Touch
                    → SignalExtender (5 bars)
                    → AND Gate ← RSI CrossAbove 30
                              → Signal Output

Plus abort logic: RSI < 20 → SR Latch (Reset) wired to all components

State Machine (1 block):

RSI < 30      → S1
LowerBB Touch → S2
RSI CrossAbove 30 → S3
RSI < 20      → Abort
                → Signal Output

Timeouts and resets handled internally!

Happy Trading with Fusion Builder!

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Fusion Builder State Machine Block – User Guide

Table of Contents

1. What is a State Machine Block?

The Core Concept

Why This Matters

2. When to Use State Machines

✅ USE State Machine When:

❌ DON’T USE State Machine When:

3. Creating Your First State Machine

Step 1: Add the Block

Step 2: Understand the Ports

Step 3: Configure Properties

4. Understanding the Properties Panel

Signal Configuration

Stages Section

Abort Configuration

Reset Behavior

Visualization

5. Wiring Stage Inputs

What Can Connect to Stage Ports?

Wiring Pattern

6. Test Configurations

Test 1: Basic 3-Stage State Machine

Test 2: Timeout Reset

Test 3: Abort Condition

Test 4: Reset Delay

Test 5: Direction “Both”

Test 6: Multi-Stage (5 Stages)

7. Real Trading Examples

Example 1: RSI Oversold Bounce

Example 2: Breakout-Pullback-Continuation

Example 3: Volume Climax Reversal

8. Troubleshooting

State Machine Won’t Advance

Signal Never Fires

Abort Keeps Triggering

Block Shows Wrong State

9. Best Practices

DO:

DON’T:

Timeout Guidelines

Quick Reference Card

State Numbers

Signal Values

Port Summary

Appendix: Comparison with Traditional Approach

Traditional (8+ blocks):

State Machine (1 block):