The Effect of Previous-Close Conditioning on BRSE: A Comparative Four-Hour Gold Evaluation

This study evaluates the effect of previous-close conditioning on the BodyRange State Engine (BRSE) and its Wick-Boundary Extension (BRSE-WBE) using four-hour gold data. The analysis directly extends an earlier comparison in which both architectures were evaluated under standard Heikin-Ashi bodydirection classification. The present study preserves the underlying state-engine architecture, structuralboundary definitions, execution assumptions, position sizing, completed-bar discipline, and evaluation window, while changing the Heikin-Ashi classification convention through previous-close conditioning. Previous-close conditioning improved endpoint return in both boundary constructions. Over the 1 January 2020 to 1 January 2026 evaluation period, Baseline BRSE increased from a previously reported return of 40.35% to 43.85%, while BRSE-WBE increased from 38.64% to 40.77%. The conditioned Baseline implementation generated the highest endpoint PnL of the four evaluated configurations, reaching 2,192.67 USD from an initial capital of 5,000 USD. The improvement in endpoint return was not accompanied by uniform improvement across all performance measures. Under previous-close conditioning, Baseline BRSE completed 406 trades with a profit factor of 1.763 and maximum drawdown of 3.60%, whereas BRSE-WBE completed 262 trades with a profit factor of 1.987 and maximum drawdown of 3.98%. BRSE-WBE therefore retained stronger trade-efficiency characteristics despite producing a lower terminal return. The results indicate that previous-close conditioning materially alters the transaction path of both BRSE boundary constructions and increases full-period endpoint return in the selected historical sample. The findings do not establish universal superiority and remain specific to the stated evaluation period and diagnostic assumptions.