Short answer
A trading signal is a measurable input used to inform a trading decision. It can rank assets, trigger entries, adjust sizing, identify regimes, or warn that a trade should be avoided under the current conditions.
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Topic cluster / Canonical learn hubsWhat is a trading signal?
Define trading signals, see examples from crypto markets, and learn how signals become strategy building blocks rather than standalone predictions.
Reviewed by Alphora Research
Updated June 18, 2026
What to remember
- A trading signal is a measurable input used to inform a trading decision. It can rank assets, trigger entries, adjust sizing, identify regimes, or warn that a trade should be avoided under the current conditions.
- A signal might say one market is more attractive than another, but a strategy also needs sizing, risk limits, portfolio construction, execution rules, and conditions for standing down.
- Crypto signals can use funding rates, perp basis, liquidity imbalance, realized volatility, cross-sectional momentum, order book depth, or regime filters. The important question is whether the signal remains useful after costs, constraints, and risk are included.
Signals are not strategies by themselves
A signal might say one market is more attractive than another, but a strategy also needs sizing, risk limits, portfolio construction, execution rules, and conditions for standing down.
Crypto signal examples
Crypto signals can use funding rates, perp basis, liquidity imbalance, realized volatility, cross-sectional momentum, order book depth, or regime filters. The important question is whether the signal remains useful after costs, constraints, and risk are included.
How Alphora fits in
Alphora treats signals as reusable research components. Catalogue pages explain what each signal measures, where it can fail, and how it can fit into a broader systematic trading workflow.