Advanced Position Building Strategy

Signova employs a sophisticated risk management technique called position build-up. Each signal can trigger up to 3 trades, allowing Signova to secure the best average entry price as the signal gains confirmation.

The first trade opens with a relatively large stop loss and a conservative CRV (Cost-to-Risk-Value ratio) of 0.50 to 1.50, while the subsequent trades execute with a balanced 0.51 and 1.27 risk-reward ratio as confirmation strengthens. The combined average of all 3 trades is between 0.76 to 1.09 CRV.

While this might seem modest, the strategy's strength lies in its statistical edge. Signova maintains an average win rate of 65% over time, which more than compensates for the below-1 CRV. As signal confirmation increases, position size scales proportionally, yet total risk per complete setup remains controlled at approximately 0.75%.

Three Crucial Advantages

First: It eliminates the need for stop loss trailing. While trailing isn't inherently bad, keeping the approach simple is favorable.

Second: It avoids overfitting in backtests by design. Since the second and third trades are opened based on actual chart behavior, which itself is rooted in complex chaotic market dynamics, the typical overfitting problem is naturally avoided. Signova's logic is tested on human-evaluated reasonability rather than machine brute-force testing.

Third: It compensates for signal timing imperfections. Almost every signal from any indicator or chart analysis is either too early or too late. Since this system places trades in a triple setup, it most likely captures the actual optimal entry point across the sequence.

This 1-2-3 system has demonstrated consistent success across thousands of trades, validating its effectiveness through real-world performance.

Portfolio Diversification

This risk and money management approach is scaled across 16 symbols, ensuring proper diversification across non-correlating markets. With over 160 different signal-generating setups utilized in total, the sheer rule of large numbers prevents the system from turning negative over time.