Signals & Rankings

Once Gilito AI has backtested millions of strategies for each asset, the results are distilled into two key outputs: signals (actionable recommendations) and rankings (ordered lists of top-performing strategies). This page explains how both work and how to use them effectively.

What is a Signal?

A signal is an actionable recommendation for a specific asset on a given day. Signals tell you what the best-performing backtested strategies are currently indicating about the asset's likely direction.

Every signal has one of three types:

• Buy — The top-performing strategies are indicating that conditions favor entering a long position or adding to an existing one
• Sell — The top-performing strategies are indicating that conditions favor exiting a position or reducing exposure
• Hold — The top-performing strategies are not generating a clear directional signal; maintaining current positions is the neutral recommendation

How Signals Are Generated

Signals are not arbitrary predictions. They are derived from a rigorous, data-driven process:

1. Gilito backtests over 2 million strategy combinations for each asset every day using the latest price data
2. Each strategy receives a Gilito Score based on its historical performance (return, risk, consistency)
3. The top-scoring strategies for each asset are identified and their current recommendations are aggregated
4. A consensus signal is produced based on what the majority of top-performing strategies are indicating right now
5. The signal is published along with its confidence level and the supporting strategy details

Signal Confidence & Strength

Not all signals carry the same weight. Gilito provides additional context about each signal to help you assess its reliability:

Signal Strength

Signal strength reflects how strongly the top strategies are indicating the given direction. A strong Buy signal means that the vast majority of top strategies agree on a bullish outlook, while a weak Buy signal means the consensus is leaning bullish but with less agreement.

Factors Affecting Confidence

• Strategy agreement — How many of the top strategies agree on the same direction. Higher agreement means higher confidence.
• Average Gilito Score — The average quality score of the strategies producing the signal. Signals backed by higher-scoring strategies are more trustworthy.
• Strategy family diversity — Signals that are confirmed by strategies from multiple families (e.g., both momentum and trend following agree) are stronger than those driven by a single family.

What Are Rankings?

Rankings are daily ordered lists of the top-performing strategies for each asset. While signals give you a simple Buy/Sell/Hold recommendation, rankings let you dive deeper into which specific strategies are performing best and why.

For each asset, Gilito publishes a ranking of its top strategies sorted by Gilito Score. Each entry in the ranking includes:

• The strategy's rank position (1st, 2nd, 3rd, etc.)
• The strategy family it belongs to
• The specific indicators and parameters used
• The Gilito Score and its component metrics
• The strategy's current recommendation (Buy, Sell, or Hold)
• Key performance statistics (total return, Sharpe ratio, win rate, max drawdown)

How Rankings Change Over Time

Rankings are not static. They are recalculated every day based on the latest price data and backtesting results. This means the top strategy for an asset today may not be the top strategy tomorrow.

Rankings shift for several reasons:

• New price data — Each new trading day adds a data point that can change a strategy's historical performance metrics
• Market regime changes — When markets transition from trending to ranging (or vice versa), different strategy families may rise or fall in effectiveness
• Volatility shifts — Changes in market volatility affect how well different strategies perform, particularly volatility-based strategies
• Drawdown recovery — A strategy that experienced a drawdown may recover and improve its score, or a previously top-performing strategy may enter a drawdown

Using Signals for Decision-Making

Gilito's signals and rankings are powerful tools for informing your investment decisions. Here are some best practices:

• Use signals as one input in your decision-making process, not as the sole deciding factor
• Check the signal strength and the number of agreeing strategies before acting
• Review the rankings to understand which strategy families are performing best for a given asset — this can give you insight into the current market regime
• Compare signals across multiple assets in your watchlist or portfolio to get a broader market perspective
• Set up agents to notify you when signals change for assets you care about, so you never miss an important shift