How to Use AI Trading Signals
Step-by-step guide to reading, evaluating, and acting on AI-generated trading signals responsibly.
Step 1 โ Read the signal card
Every signal shows five key fields:
- Direction โ BULLISH, BEARISH, or NEUTRAL
- Entry price โ the price the signal was generated at. The trade is valid within 0.5% of this price.
- Stop loss โ your exit if the trade goes wrong. Non-negotiable.
- Target โ the profit objective. Exit fully or partially here.
- Confidence โ 50โ100. The AI's conviction level.
Step 2 โ Check the risk/reward
Before considering any signal, calculate: (Target โ Entry) รท (Entry โ Stop). TradeMind AI only publishes signals with R/R โฅ 1.5. If a signal slipped through below that, skip it.
Step 3 โ Size your position
Never risk more than 1โ2% of your total account on a single signal. Use the position sizer on the signal card: enter your account size and it calculates the maximum share count so your loss if the stop hits equals your chosen risk amount.
Step 4 โ Set the stop before you enter
Place your stop order as soon as you enter the position. Do not wait. Do not move it further away if price falls โ that is how small losses become catastrophic ones.
Step 5 โ Let it resolve
Signals auto-resolve when price hits the target or stop. You do not need to monitor constantly. Set your stop, optionally set a limit sell at the target, and step away. Watching the price tick-by-tick leads to emotional decisions.
What to do when a signal hits its target
Congratulations โ take the profit. Resist the urge to "let it run" beyond the target without a new signal. The target is where the AI's analysis suggests the move completes. Beyond that, the edge is gone.
What to do when a stop is hit
Exit. Immediately. A stop being hit means the signal thesis was wrong. Re-entering the same trade hoping for a bounce is called "averaging down" and is one of the most common ways traders turn small losses into large ones.
See it in action
Every TradeMind AI signal shows confidence score, entry, stop, target, and R-multiple โ all explained with tooltip hints when you hover the term.