Now that you understand how Volensy’s signal system works, this guide covers the practical side: how to read a signal, when to enter a trade, how to manage take profit and stop loss levels, and the risk management basics every trader should follow. Whether you receive a signal via the Signals Panel or Telegram, the approach is the same.
Anatomy of a Signal
Every Volensy signal provides a consistent set of information. Here is how to read it:
Direction: Long or Short
The direction tells you the type of trade the signal is suggesting:
- Long — The algorithm expects the price to go up. You would buy (or go long) at the entry price and sell at a higher price.
- Short — The algorithm expects the price to go down. You would sell (or go short) at the entry price and buy back at a lower price.
If you are trading on a spot exchange that does not support shorting, you would only act on Long signals.
Entry Price
The entry price is the price level at which the signal was generated. This is the ideal price to enter the trade. In practice, by the time you see the signal and place your order, the market price may have moved slightly. A small deviation from the entry price is normal and expected.
Timeframe
The timeframe indicates the chart interval the strategy was evaluated on. Common timeframes include 15-minute (15m), 1-hour (1H), 4-hour (4H), and daily (1D). The timeframe affects how long you should expect to hold the trade:
- 15m signals — Typically resolve within minutes to a few hours.
- 1H signals — May take several hours to play out.
- 4H signals — Can take a day or more.
- 1D signals — May take several days to reach TP or SL levels.
Understanding the timeframe helps you set expectations and avoid closing a trade prematurely.
Strategy
The strategy name tells you which of Volensy’s algorithms generated the signal. Each strategy has its own strengths and characteristics. Over time, you may find that certain strategies perform better in specific market conditions. Review the signal history in the Signals Panel to compare strategy performance.
*See also: Indicator Comparison Guide*
When to Enter a Trade
Timing your entry is important. Here is a practical approach:
Acting on a New Signal
- Receive the signal via the Signals Panel or Telegram.
- Check the current market price against the signal’s entry price. If the price is close to the entry (within 0.2-0.3%), the signal is still fresh.
- Confirm the direction matches your market view. Even with automated signals, a quick glance at the chart can add confidence.
- Place your order at or near the entry price. You can use a market order for immediate execution or a limit order at the entry price for precision.
When NOT to Enter
- The price has already moved significantly past the entry — If a Long signal had an entry at $50,000 and the price is already at $50,400, you have missed the ideal entry. Entering now means tighter profit margins and the same stop loss risk.
- Multiple take profit levels have already been hit — If the signal status shows TP1 or TP2 already reached, the bulk of the move may be behind you.
- Market conditions have changed — Major news events, exchange outages, or extreme volatility can invalidate a signal’s premise. Use judgment.
Take Profit Levels: TP1, TP2, TP3
Volensy signals use a three-tier take profit system. Each level represents a percentage gain from the entry price:
| Level | Distance from Entry | Purpose |
|——-|——————-|———|
| TP1 | 0.5% | Conservative target. Secures a small, quick profit. |
| TP2 | 1.0% | Moderate target. Captures a meaningful portion of the move. |
| TP3 | 1.5% | Full target. The maximum expected profit for the signal. |
How to Use TP Levels
There are several approaches to managing take profit. Choose the one that fits your style:
Exit All at TP1 (Conservative)
Close your entire position when TP1 is hit. You take a smaller profit but lock it in quickly. This works well in choppy or uncertain markets where reaching higher levels is less likely.
Scale Out Gradually (Balanced)
Close one-third of your position at each TP level. For example, sell 33% at TP1, another 33% at TP2, and the remaining 34% at TP3. This approach balances profit-taking with the chance to capture a larger move.
Hold for TP3 (Aggressive)
Keep your entire position open until TP3 is reached. This maximizes your profit if the trade goes well, but you risk giving back gains if the price reverses after hitting TP1 or TP2.
Stop Loss: Protecting Your Capital
Every signal includes a Stop Loss (SL) set at 2% from the entry price. The stop loss is the price at which you should exit the trade to limit your loss.
For a Long Signal
If the entry price is $50,000, the stop loss is at $49,000 (2% below entry). If the price drops to $49,000, you exit the trade and accept the loss.
For a Short Signal
If the entry price is $50,000, the stop loss is at $51,000 (2% above entry). If the price rises to $51,000, you exit the trade.
Setting Your Stop Loss
Always place a stop loss order as soon as you enter a trade. Do not rely on manually watching the price. Markets can move fast, and a stop loss order ensures you are protected even if you are away from your screen.
Risk Management Basics
Signals are a tool, not a guarantee. Here are the essential risk management principles to follow:
Position Sizing
Never risk more than 1-2% of your total trading capital on a single trade. If your trading account has $10,000, the maximum you should risk on one signal is $100-$200. Since the stop loss is 2% from entry, this means your position size should be calculated accordingly.
Example:
- Account size: $10,000
- Risk per trade: 1% = $100
- Stop loss: 2% from entry
- Maximum position size: $100 / 0.02 = $5,000
Diversification
Do not put all your capital into a single signal or a single market. Spread your trades across different signals, strategies, and timeframes to reduce the impact of any single loss.
Emotional Discipline
Stick to the system. Do not chase trades that have already moved, do not skip your stop loss because you “feel” the trade will turn around, and do not increase your position size after a winning streak. Consistency is what makes a trading approach sustainable.
Tracking Your Results
Use the Signals Panel to review how signals perform over time. Pay attention to:
- Win rate by strategy — Which strategies have the highest success rates?
- Average PnL — What is the average profit on winning signals vs. the average loss on losing signals?
- Performance by timeframe — Do shorter or longer timeframe signals perform better for you?
This data helps you refine which signals to act on and how to allocate your capital.
*See also: Filtering & Sorting Signals*
Important Disclaimer
*See also: Risk Management Essentials*