What a signal card tells you
A perpetual futures signal card contains six pieces of information. Each one has a specific job. Understanding what each means — and what to do with it — is the difference between executing systematically and trading on gut feel.
- ·Entry zone — the price level where confluence was detected. This is not a guaranteed fill price; it is a reference point. If price has moved significantly by the time you see the signal, size down or skip it entirely.
- ·Stop loss — the price that invalidates the trade thesis. Set it before you enter. It is non-negotiable. This is not a suggestion — it is the mechanical exit that keeps a single loss from becoming a catastrophe.
- ·TP1 — the exit target — the take-profit at 1.33× the risk distance. This is the verified system exit: every backtest calculation closes the full position at TP1, and so should you. One target, defined before entry, no improvisation.
- ·Confluence — the signal fired because multiple independent layers of the detection system aligned at once. More layers in agreement means more confirmation behind the setup.
- ·AI analysis — the bull case (why the trade could work), the bear case (what invalidates it), and the risk note (the specific price level that kills the idea). Read it before entering.
New to perps? Start here → What Are Perpetual Futures?
The most important rule
Set your stop before you enter. Every time. Without exception.
The stop loss is the only variable you control with certainty. Entry price is approximate — you may fill slightly above or below the zone. Exit at a target is uncertain — price may never reach it. The stop loss is definitive. It is where you agree, before placing the trade, that you were wrong.
Moving your stop after entry because the trade is going against you is how small losses become account-ending losses. The market does not owe you a recovery. A stop that moves is not a stop — it is a hope.
How to set a stop loss before you enter → Stop Loss Guide
Position sizing from a signal
Position size is fixed by the type of signal, not by how you feel about it:
- ·Standard signal — 10% of allocated trading capital.
- ·High conviction signal (marked 🔥) — same 10% size; the grade marks elevated confidence, not a different size.
The formula: position size = (account size × position pct) ÷ entry price = number of contracts.
Worked example — a $10,000 account, a standard signal, entry at $65,000 on BTC:
- ·Allocation: $10,000 × 10% = $1,000
- ·Position size: $1,000 ÷ $65,000 = 0.0154 BTC
Why fixed sizing matters: varying position size based on how confident you feel destroys the mathematical edge. The system's win rate and expectancy were calculated assuming fixed sizing across every signal. Cherry-picking sizes is cherry-picking outcomes — and it always goes wrong at the worst moment.
The full math on sizing → Perpetual Futures Position Sizing
What confluence actually means
A signal fires only when multiple independent layers of the detection system agree that conditions are right — momentum, market structure, trend, macro regime, sentiment, and funding. Confluence is a measure of confirmation, not a probability.
When additional independent layers align on top of the base signal, the signal is graded high conviction and marked 🔥 — an elevated-confidence flag, nothing more.
But the system is designed to be followed on all signals, not just the high-conviction ones. The edge is in the aggregate — across hundreds of signals, not any single one.
How leverage interacts with every signal → Perpetual Futures Leverage Guide
What to do after the signal fires
Five steps, in order:
- 1.Read the full signal card, including the AI analysis.
- 2.Check the morning Vault Radar for macro context.
- 3.Calculate your position size (10% of allocated capital).
- 4.Set your entry, stop, and take-profit target before entering.
- 5.Execute and leave it alone.
Do not move your stop after entry. Do not exit early because it feels uncomfortable. Do not skip the next signal because this one lost. The edge compounds across hundreds of signals — not any single one.
When the signals lose — how to stay systematic → How to Survive a Losing Streak
The full systematic execution framework → How to Trade Perpetual Futures Systematically