Signal Basics
- Trading Signal
- A trading signal is a structured trade idea that specifies when to buy or sell a financial asset, including entry price, stop loss, and take profit levels. On SignalFloor, every signal is tracked from entry to close with verified performance data.
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- Entry Price
- The entry price is the specific price level at which a signal provider recommends opening a trade. It represents the point where the trade thesis begins and risk management levels are calculated from.
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- Stop Loss
- A stop loss (SL) is a predetermined price level at which a trade is automatically closed to limit losses. It defines the maximum acceptable loss on a trade and is essential for risk management. Every signal on SignalFloor includes a stop loss level.
- take profitrisk reward ratiodrawdown
- Take Profit
- A take profit (TP) is a predetermined price level at which a trade is automatically closed to lock in gains. Signals may have one or multiple take profit targets. The distance between entry and take profit, relative to the stop loss, determines the risk-reward ratio.
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- Signal Status
- Signal status indicates where a signal is in its lifecycle: Active (price is running toward target or stop), TP Hit (take profit reached, closed as a win), or SL Hit (stop loss reached, closed as a loss). On SignalFloor, status updates are tracked in real time.
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Risk & Performance
- Risk-Reward Ratio
- The risk-reward ratio (R:R) compares the potential loss (distance to stop loss) against the potential gain (distance to take profit) of a trade. A 1:2 R:R means the potential profit is twice the potential loss. Higher ratios indicate more favorable trade setups.
- stop losstake profitwin rate
- Win Rate
- Win rate is the percentage of closed signals that hit their take profit target versus those that hit their stop loss. A 60% win rate means 6 out of 10 signals closed profitably. On SignalFloor, win rates are calculated from verified, tracked results.
- risk reward ratioprofit factordrawdown
- Drawdown
- Drawdown measures the peak-to-trough decline in a provider's performance over a given period. It represents the largest loss from a high point before a new high is reached. Lower maximum drawdown indicates more consistent performance and better risk management.
- win raterisk reward ratioprofit factor
- Profit Factor
- Profit factor is the ratio of total profits to total losses across all closed trades. A profit factor above 1.0 means the provider is net profitable. A profit factor of 2.0 means gross profits are twice gross losses. It is one of the most reliable measures of trading consistency.
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- Break-Even
- Break-even describes a trade outcome where the closing price equals the entry price, resulting in neither profit nor loss (excluding fees). A provider may move their stop loss to the entry price to 'lock in break-even' and eliminate downside risk on a trade that has moved in their favor.
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Platform Concepts
- Signal Provider
- A signal provider is a verified trader who shares trading signals on SignalFloor. Providers are verified through track record checks, and their performance (win rate, drawdown, profit factor) is tracked transparently. Providers earn through follower subscriptions.
- trading signalprovider scoreverified provider
- Verified Provider
- A verified provider is a signal provider whose identity and trading history have been confirmed by SignalFloor. Verification includes account connection for read-only performance tracking, minimum trade history requirements, and ongoing monitoring of drawdowns and consistency.
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- Provider Performance Score (PPS)
- The Provider Performance Score (PPS) is a composite metric used by SignalFloor to rank signal providers. It factors in win rate, profit factor, drawdown, signal consistency, and risk-adjusted returns. A higher PPS indicates stronger overall performance. Scores above 65 are considered actionable.
- win rateprofit factordrawdownsignal score
- Signal Score
- The Signal Score is a per-signal quality rating calculated from the provider's PPS, the signal's risk-reward ratio, recency, and engagement data. Signals with a score of 70 or above and a provider PPS of 65 or above appear in the 'Signals to Act On Now' feed.
- provider scorerisk reward ratioactionability
- Actionability
- Actionability describes how ready a signal is for a trader to act on. SignalFloor ranks actionability states from highest to lowest: Triggered (price has reached entry), Near Entry (price is approaching), Break-Even (stop moved to entry), and Pending (waiting for entry). The actionable signals feed prioritizes signals in the most time-sensitive states.
- signal scoretrading signalsignal status