Signal Bench

Methodology

How Signal Bench generates a signal, how we resolve results, and the rules we hold ourselves to. No black box.

1. The engine: confluence, not a single indicator

A single indicator is easy to fool, so no one of them decides a trade. Each of the following casts a vote, and the net vote sets the direction:

  • Trend — EMA 9 / 21 / 50 / 100 / 200 alignment
  • Momentum — RSI and the MACD histogram
  • Reversals — the WaveTrend oscillator
  • Structure — higher highs & higher lows (the public core of Smart Money Concepts)
  • Participation — relative volume vs the 20-candle average
  • Higher-timeframe confluence and Bitcoin-dominance rotation for alts

A direction is only called when several factors genuinely agree. Otherwise the output is NO TRADE.

2. The regime filter

Trend-following logic only works in a trend. An ADX filter and a market-regime classifier (trending / ranging / volatile / breakout) decide whether the engine is even in its element. In ranging or volatile conditions it trims conviction or holds NO TRADE rather than manufacture a weak signal. Read more in Learn: market regime detection.

3. The trade plan

Every non-WAIT signal gets a full plan derived deterministically from volatility (ATR): an entry zone, a stop-loss, a take-profit set slightly below the raw computed target to improve the hit rate, plus leverage and a position size sized to your account and risk profile. Levels are maths, not opinion.

4. How results are resolved

Each strong signal is logged the moment it fires, with its exact levels. Later, we walk real candles from the signal time: if take-profit is hit first it's a win, if the stop is hit first it's a loss, and if neither we record how close the move got ("Avg TP progress"). The record is immutable — levels are never edited after logging. See the live track record.

5. Backtesting

The public backtest runs the exact live engine over recent history with no lookahead (no future data is used to make a past decision). Backtested and live results are shown separately and never blended. See Learn: backtested vs live.

6. Our honesty rules

  • We never advertise guaranteed win rates or "accuracy" claims.
  • The number on a signal is a setup score (indicator agreement), not a win probability.
  • Losses and NO-TRADE outcomes are shown alongside wins.
  • It's an analytical tool — not financial advice.
Read our editorial policy →