What is a trading signal?
A trading signal is an automated or human-generated flag suggesting a buy, sell, or hold action on a specific security, typically with a target price and stop-loss. Signals can come from technical indicators, pattern recognition, AI models, or human analysts. Quality signals include a published track record of accuracy.
More detail
Three main types of trading signals: rule-based (e.g. RSI crosses 30), algorithmic (multi-input scoring), and discretionary (human judgment).
Signals without published win rates are nearly impossible to evaluate — anyone can claim 'I have edge.'
Realistic win rates for technical-signal-based trading: 50-60% at short horizons. Anything claiming 80%+ is almost always cherry-picked.