Understanding Signals

Signals are the core output of Gilito AI's quantitative analysis. Every day, Gilito tests over 2 million strategies per asset and determines whether the top-performing strategy currently recommends buying, selling, or holding each asset. This guide explains how to find, read, and interpret these signals.

Where to Find Signals

Signals appear in several places throughout the Gilito AI platform:

• Asset detail page — the most detailed view, showing the current signal along with the strategy that drives it
• Watchlist overview — a quick summary column showing the current signal for every tracked asset
• Portfolio view — signals displayed next to each position so you can see recommendations for your holdings

Reading a Signal

Each signal has two components:

Signal Direction

• Buy — the top strategy for this asset currently indicates a long entry or continued upward momentum
• Sell — the top strategy indicates it may be time to exit or that downward pressure is expected
• Hold — the top strategy suggests maintaining the current position with no strong directional bias

Confidence Level

Alongside the direction, each signal shows a confidence indicator that reflects how strongly the top strategy supports the recommendation. A higher confidence means the strategy has a stronger historical track record and the current market conditions align well with its parameters.

What Drives Each Signal

Signals are not based on opinions or predictions. Each signal is driven by the top-ranked strategy for that asset, which is selected based on:

• Historical backtesting performance across multiple metrics (return, risk-adjusted return, win rate, drawdown)
• The composite Gilito Score that weighs all these factors together
• The strategy's current position — whether its entry/exit rules are triggered right now

You can always click through to the strategy detail page to see exactly which strategy is driving the signal and review its full backtest results. See the Reading Strategy Results guide for details.

How Signals Update Daily

Gilito AI recalculates signals every trading day. The process works as follows:

1. After market close, the latest price data is ingested for all supported assets
2. Technical indicators are recalculated with the new data
3. All strategies are re-evaluated to determine their current recommendations
4. The top strategy for each asset is ranked and its signal is published

Signals typically update within a few hours of market close. You will see the most up-to-date signal when you log in the following morning.

Interpreting Signal Changes Over Time

Signals can change from day to day as market conditions evolve. Here is how to think about signal transitions:

• Hold to Buy — the top strategy's entry conditions have been met, suggesting a potential opportunity
• Buy to Hold — the strategy is still in a position but the initial entry signal has passed
• Hold to Sell — the strategy's exit conditions are triggered, suggesting the trend may be reversing
• Buy to Sell — a significant shift indicating the top-performing strategy has flipped its recommendation

Signal History

You can view the complete signal history for any asset on its detail page. The signal history shows:

• Past signal directions and when each transition occurred
• The strategy that drove each signal at the time it was generated
• A timeline visualization so you can see signal patterns alongside price movements

Reviewing signal history helps you understand how well Gilito's strategies have tracked an asset's price movements and builds confidence in the analysis over time.