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Signals AI

Signals AI is an **indicator-based **strategy builder that allows users to create, backtest, Algo Trade and forward test indicator-based strategies without writing any code.

Users can build strategy conditions using the strategy canvas, which provides a drag-and-drop condition builder. Indicators, comparison operators and logical operators can be combined to define the entry and exit conditions of the strategy.

Users can also create strategy conditions using the Signals AI Agent. Instead of building the logic manually, users can describe their strategy in plain English, and the AI agent will generate the required conditions in the strategy canvas.

Once the strategy conditions are created, users can go to the Chart Preview section to see at what time and date the strategy entered or exited based on the defined conditions.\

After verifying the signals, users can go to the Backtest Results section and connect an AlgoTest strategy to backtest the indicator-based signals.

Signals AI currently supports backtesting on the following instruments:

Indices​

  • Nifty

  • BankNifty

  • Sensex

  • MidcpNifty

  • Finnifty

  • Bankex

Stocks​

  • Nifty 200 stocks

Crypto​

  • BTCUSD

  • ETHUSD

Signals AI allows users to build indicator strategies, verify signals on charts, and backtest them using AlgoTest strategies.


How to Use Signals AI

Before creating a strategy using Signals AI, it is important to understand the different sections and nodes available in the strategy canvas.

The canvas contains the following sections:

  • Instrument Selection Section

  • Advanced Settings Section

  • Entry Conditions

  • Exit Conditions\

    Instrument Selection Section​

    Using the Instrument Selection option, users can choose the instrument on which they want to create the strategy.

    signals AI instrument

Advanced Settings Section​

The Advanced Settings section allows users to control how signals are generated.

It contains the following options.

Max Concurrent Signals​

This option defines how many trades can be active at the same time.

Example:

  • If it is set to 1, a new entry will not be taken until the previous position exits.

If it is set to Unlimited, the strategy can take multiple entries whenever the conditions become true.

Max Signals in a Day​

This option allows users to limit the number of entries taken in a single day.

Example:

If the value is set to 1, only one entry will be taken in a day even if the condition becomes true multiple times.\

Entry Conditions and Exit Conditions​

Entry and Exit conditions define when the strategy should enter or exit a trade.

Signals AI provides four types of nodes for building strategy logic:

  • Logical Node

  • Comparison Node

  • Boolean Node

  • Time Node

    Each node is explained below.


    Logical Node

    Logical Node is used to combine multiple conditions together.

    It supports the following logical operators:

    • AND

    • OR

    • NOT

    These operators help users build complex conditions in the strategy canvas.

    Example:

    RSI < 30 AND Price > VWAP


    Comparison Node

    Comparison Node is used to **compare two values or **indicators.

    It contains:

    • Two indicator input sections

    • One comparison operator section

    Users can select indicators and define how they should be compared.

    Supported indicators include:

  • ADX

  • ATR

  • Bollinger Bands

  • EMA

  • MACD

  • ROC

  • RSI

  • SMA

  • Stochastic

  • Supertrend

  • VWAP

  • VWMA

  • Williams %R

  • WMA

  • Candle (Heikin Ashi / Normal Candle)

  • Min Max

  • Special K

    Indicator Settings​

    After selecting an indicator, users can configure its parameters.

    Period​

    Defines the lookback period of the indicator.

    Example:

    EMA Period = 20

    Timeframe​

    Specifies the timeframe on which the indicator should be calculated.

    Offset​

    Offset allows users to reference previous candles.

    Example:

    Offset = 1 → previous candle

    Candle Type​

    Users can choose between:

    • Normal Candle

    • Heikin Ashi

    Source​

    The indicator calculation can be based on different price sources:

  • Open

  • High

  • Low

  • Close

  • HLC3

  • HL3\

    Comparison Operators​

    Signals AI supports the following comparison operators:

    • Greater Than

    • Less Than

    • Equal

    • Not Equal

    • Greater Than or Equal To

    • Less Than or Equal To

    • Crosses Above

    • Crosses Below

    These operators define how two indicator values should be compared.

    Boolean Node​

    Boolean Node allows users to manually set the condition value as:

    • TRUE

    • FALSE

    This can be used in specific cases where a fixed condition is required.

    Time Node​

    Time Node allows users to add time-based conditions to the strategy.

    It contains:

    • Time input

    • Comparison operator

    Using this node, users can define conditions such as:

    Time > 09:30

    Creating a Strategy using Signals AI​

    In this section, we will create a simple indicator-based strategy using Signals AI and see how the complete workflow works.

    The process involves the following steps:

    1. Select the instrument

    2. Create entry conditions using the strategy canvas

    3. Use the Signals AI Agent to generate strategy logic

    4. Verify signals in Chart Preview

    5. Check signals in Entry / Exit Log

    Backtest the strategy using an AlgoTest strategy

    Step 2: Create Entry Conditions using the Strategy Canvas​

    Next, we will create the entry condition for the strategy.

    Click on the "+" icon under the Entry Conditions section and add a Comparison Node.

    For this example, we will create the following condition:

    RSI crosses above 30

    To create this condition:

    1. Select RSI as the indicator.

    2. Set the Period to 14.

    3. Choose the comparison operator as Crosses Above.

    4. Set the comparison value to 30.

    This means the strategy will generate an entry signal when RSI crosses above 30.

    Step 3: Create Exit Condition​

    Now we will define the exit condition.

    Click on the "+" icon under the Exit Conditions section and add a Comparison Node.

    For this example, we will create the following condition:

    RSI crosses above 70

    To configure the exit condition:

    1. Select RSI as the indicator.

    2. Set the Period to 14.

    3. Choose the comparison operator as Crosses Above.

    4. Set the comparison value to 70.

    This means the strategy will exit when RSI crosses above 70.

    Step 4: Generate Strategy Conditions using Signals AI​

    Instead of manually creating conditions, users can also use the Signals AI Agent.

    Users can simply describe their strategy in natural language, and the AI will generate the required conditions in the strategy canvas.

    Example prompt:

    Create a strategy where we enter when RSI crosses above 30

    and exit when RSI crosses above 70.

    The AI agent will automatically generate the required nodes and conditions in the strategy canvas.

    Users can then modify or refine the generated conditions if needed.

    Step 5: Check Signals in Chart Preview​

    After creating the strategy conditions, go to the Chart Preview section.

    The Chart Preview shows where the strategy generated entry and exit signals on the chart.

    This allows users to visually verify if the strategy logic is behaving as expected.

    Users can see:

    • Entry signals

    • Exit signals

    • Date and time of each signal

    Step 6: Review Signals in Entry / Exit Log​

    Signals AI also provides a detailed log of all generated signals.

    Go to the Entry / Exit Log section to see the signal history.

    This table shows:

    • Entry time

    • Exit time

    • Signal sequence

    This helps users analyze how frequently the strategy generates signals.

    Step 7: Backtest the Strategy​

    Once the signals are verified, the next step is to backtest the strategy.

    Go to the Backtest Result section.

    Here, you can connect an AlgoTest strategy to backtest the generated signals.

    Steps:

    1. Select or Create an AlgoTest strategy.

    2. Configure the required strategy parameters. For example Once the signal is generated the user can decide here what needs to be executed from this section.

    3. Run the backtest.

    Signals AI will use the generated entry and exit signals to run the backtest.

    Step 8: View Backtest Results​

    After running the backtest, the results will be displayed in the Backtest Result section.

    Users can add slippages, Taxes and charges in the strategy. User can also see the Performance using metrics such as:

    • Profit and Loss

    • Win Rate

    • Drawdown

    • Trade History\

    This helps users evaluate the effectiveness of their indicator-based strategy.

    Step 9: Save and Execute the Strategy​

    After verifying the backtest results, users can save and execute the strategy.

    Saving the Strategy​

    On the Signals AI page, click the Save Strategy button to save the strategy.

    Once the strategy is saved, it becomes available in the Signals Dashboard.


    Executing the Strategy

    To execute the strategy, go to the Signals Dashboard.

    1. Open the Signals Dashboard.

    2. Click on the Indicator section.

    3. Go to the Saved Signals section.\

    Here, you will see the strategies that were created and saved using Signals AI.

    Running the Strategy​

    From the Saved Signals section, users can run the strategy using the following options:

    Algo Trade (Live Trading)​

    Click Algo Trade to execute the strategy in live markets.

    The strategy will start generating trades automatically based on the indicator conditions defined in Signals AI.

    Forward Test (Paper Trading)​

    Click Forward Test to run the strategy in paper trading mode.

    This allows users to test the strategy in live market conditions without placing real trades.

Important Points to Remember​

Multiple Entries and Exit Behaviour​

  • If multiple entries are generated, all open entries will be exited by a single exit signal.

    Multiple exit signals will not be generated for multiple entries.
    An exit will always occur only once, and two concurrent exit signals will never be generated.

Expiry Behavior for Positional Strategies​

  • In positional strategies, if an entry signal occurs on the day of expiry, the strategy will pick the current expiry contract.

    In this case, the exit will be marked at the expiry of that contract.

    This behavior does not affect intraday strategies.

Timeframe Limitation for Execution​

  • Strategies using a Daily timeframe (or higher) are not currently supported for execution.

    However, these strategies can still be backtested.

Supported Data for Signal Generation​

  • Currently, signal generation is supported only on:

    • Cash (Equity) data

    • Index data\

    Support for Futures and Options data will be added in the future.

Chart and Indicator Differences with TradingView​

  • Charts and indicator values may not exactly match TradingView.

    This is because different data sources are used. AlgoTest uses data directly from exchange data vendors, while TradingView may use different data providers.

    For example, in Heikin Ashi candle calculations, the starting point of the data plays an important role. Since the data inception point may differ, Heikin Ashi candles on AlgoTest and TradingView may not match exactly.

VWAP Limitation for Index Data​

  • VWAP uses volume data for its calculation.

    Since index data does not contain volume information, VWAP cannot be used for signal generation on index instruments.
    \