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Aires Signals (reversal)

Instruction

Resonance Team avatar
Written by Resonance Team
Updated over 3 weeks ago

What is an Aires Reversal Signal

Broadly speaking, it's a combination of data available on Resonance, filtered according to specific parameters.

Aires utilizes data from several tools simultaneously:

  • FTT

  • BAS

  • and a number of additional supporting metrics

We are particularly interested in cluster accumulation and passive (limit order) support.

It’s important to note that these signals have a floating risk/reward ratio: in some cases it’s 1:1.25, in others – 1:2.5.

Note: All data is sourced from spot exchanges, so prices may differ from futures.

How to View Signal Performance History

  • Open the Pairs tree

  • Select the group "Aires reversal"

  • Choose the date you're interested in

  • On the right side of the tree, select the tickers where a signal appeared

After selecting the signal from the tree, on the main cluster chart:

  • The chart rewinds to the date of the signal

  • The visual representation of the signal is displayed on the chart

We recommend starting with M5 or M15 timeframes when reviewing signals.

Profitability Over the Recent Period. Statistical Model

The available signal history spans nearly 2 months.

Click the "Statistics" button to explore in more detail.
Statistics are available in your personal account.

The stats include:

  • A chart

    • Total profitability across all signals (in % / in $ based on your input deposit)

    • A statistical model (based on signal history)

  • Key performance indicators

The profitability chart includes two components:

  • Line — cumulative profit

  • Histogram — PnL per individual trade

Key Signal Performance Metrics

  • Your configured deposit (or default value)

  • Your set risk per position (or default value)

Profitability over the period:

  • Percentage: return based on your risk level

  • Return relative to deposit (in brackets)

Signal Stats Include:

  • Average risk/reward ratio (stop-loss to take-profit)

  • Winrate — ratio of profitable to losing trades

  • Average signals per day

  • Total number of signals in the period

  • Detailed breakdown:

    • % of profitable trades

    • % of breakeven trades

    • % of losing trades

  • Time from signal open to close:

    • 10th percentile

    • 50th percentile

    • 90th percentile

Statistical Model (Based on Signals)

The backtest model is built on displayed historical data.
It generates random scenarios based on:

  • Number of signals

  • Risk/reward ratios (stop/take)

  • Your percentage risk

At the bottom, there’s a "Refresh" button to generate a new randomized projection of the equity curve.

How to work with the Telegram bot

The /help command helps to find all the commands available in the bot.

Next, you need to log in /login

Note: Before logging in, check that the number associated with your Telegram account is correctly specified in your personal account. You can change your phone number in your personal account.

Subscribe to signals with the command - /subscribetosignals

How to Read a Signal

The Telegram bot notifies you of the following events:

  • New signal generated

  • Stop-loss moved to breakeven

  • Closed by stop-loss

  • Closed by take-profit

  • Closed at breakeven

Opening

As soon as the algorithm detects a potential entry point, you receive a signal message with:

  • Direction

  • Ticker

  • Entry price

  • Take-profit price (distance from entry)

  • Stop-loss price (distance from entry)

  • Position size (based on your configured deposit and risk)

  • Time of the signal

Stop Moved to Breakeven

When the price moves far enough toward TP, the algorithm recommends moving your stop to breakeven to reduce potential risk.

Closing a position with a stop loss

Коли ціна досягає ціни стоп-лосса, алгоритм відправляє повідомлення про те, що позиція досягла стоп-лосса.

Closing a position at take profit

When the price reaches the take profit price, the algorithm sends a notification that the position has reached take profit.

Closing a position at breakeven

When the price reverses after moving towards take profit and reaches the break-even price, the algorithm sends a notification that the position has reached break-even.

Idea Validation

The system finds signals automatically. Stop loss and take profit are also automatically generated based on statistics and a number of market parameters.

Signals are searched for and sent without human intervention.

The signal itself is an interpretation of a directional strategy from Resonance.

Note: signals are not an ideal entry point because they do not take into account the real impact of your capital on the liquidity of the exchange where you will open positions.

The concept of the idea

Let's take a look at the example of a long position (for a short, the mirror), which is to:

  1. Find a decrease in the price of the coin

  2. Identify the area where buyers and sellers were actively trading (accumulations)

  3. Find support in the form of limit buy orders (a bright spot on the heat map)

  4. Determine from the volume delta histogram that new sales do not reduce the price.

When the algorithm detects an idea based on these parameters, it records it as a position opening, determines the stop loss and take profit price, and sends a signal to the Telegram bot.

An opportunity for traders is to use this signal to save time by passing the task of finding and selecting ideas to the algorithm.

No matter how well the algorithm is written, it cannot take into account all the factors as a human can.

Example 1

FLOKI coin - the signal closed at breakeven.

What can be said about the situation:

  • there was a price increase until the 26th and purchases led to a price increase (green arrow)

  • in the afternoon of the 26th, purchases did not lead to a price increase, and sales led to a price decrease (green area)

There was a signal that closed at breakeven, but what happened next?

  • the price stopped updating the low (red line)

  • there are steady purchases, which increase the price volatility (green zone)

  • sales no longer update the low (red zone)

According to Ayres' directional strategy, this is a long idea.

Example 2

ICP coin. The situation is similar, but here purchases do not stop the price, and new sales continue to push the price lower (green area). There is no entry strategy here. Therefore, you can either fix the minus without waiting for a stop loss or wait for a stop.

Or the market will suddenly give you a profit.

Implementation of the idea

The first task is to validate the idea according to the checklist from Aires.

The second task is to open a position.

Entry – Stage 1 (Basic)

Opening a position is not a difficult task:

  • first, you need to understand how to open a position on the stock exchange

  • then remember the position volume calculated by Aires

  • check whether there is enough volume in the order book to open a position without significantly affecting the price

  • if there is, then you can enter with a market order

    • copy the stop loss price and set it when creating an order

    • copy the take profit price and set it when creating an order

    • enter the volume

    • select a direction

    • open a position

  • if you receive a signal to move the stop loss to breakeven, move it

Entry – Stage 2 (Cost-Efficient)

If you already have experience of validating an idea according to the checklist, then you can enter with a limit order. This way, you will save on commissions when opening a position.

The rest of the steps, with risks, targets, and volume, are the same.

However, there is a risk that the market will not meet your limit and in case of a successful signal, you will be hit with a FOMO.

Entry – Stage 3 (Split Entry)

If you’re comfortable with the previous step, you can experiment with splitting your entry:

  • Determine your entry price

  • Determine your stop-loss level

  • There should be relatively large limit orders (a bright spot on the heatmap) between entry and stop-loss

  • Enter 80% of your position risk via market or limit order

  • Allocate the remaining 20% of risk between the entry price and the beginning of the major limit cluster

  • Place your stop-loss just beyond the limit cluster

With this approach, you give the market a chance to fill your order at a better price.

However, breakeven management becomes less straightforward in this case.

Once the position is open, wait for the outcome and lock in profit.

In the case of a stop-loss or breakeven – it's straightforward.

Take-profit, however, allows for several variations.

Position Management

Stage 1 (Simple)

Your task is simply to wait for the take-profit to be reached

Stage 2 (Adjusting Targets and Risk)

In this scenario, your goal is to trail both stop-loss and take-profit as price progresses towards the target.

This can result in significantly higher profits if you manage to catch a strong directional move.

For example, in the chart below, a short position could have been held until selling pressure no longer impacted the price decline.

Stage 3 (Scaling In)

This is the most advanced level of position management.
It requires a strong ability to assess the impact of volume on price movement.

The idea is to scale into a position after price passes consolidation points.

As we see in the chart below:

  • Buyers have the upper hand, as buying activity pushes price up, while selling fails to push it down (as confirmed by the delta)

  • A "checkpoint" can be:

    • A price consolidation zone

    • A major volume collision (visible as a green zone)

Note: This setup depends on the market. The coin must exhibit a sufficiently strong demand imbalance.

In this version, there is no pre-defined take-profit.
The position is eventually closed by stop-loss — but with significant profit.

After the price reaches the first checkpoint and continues to move in the same direction, your task is to move the Stop-loss for the first position to breakeven and open another position with the same risk.

After the price reaches another checkpoint and continues to move, your task is to open another position. You need to move the Stop of the second position to breakeven, and move the Stop of the first position to the Stop of the second position.

With a long "rollbackless" price movement, you can accumulate a huge position. The further the price moves, the more income you will receive for each % of the price movement.

This approach is the most difficult, because it is necessary that:

  • the trader has a high level of assessment of the impact of volume on the price

  • on the coin, the participants have formed a significant level of deficit, which will allow creating a stable trend movement

In the example (on the chart), the deal would close at a Stop-loss somewhere in the red zone, with a huge profit.

Conclusion

Aires reversal signals represent a semi-automated version of Resonance’s directional strategy.

Unfortunately, full automation is not yet possible.

At the moment, a machine cannot take into account all market factors. Despite the fact that the strategy checklist consists of only a few points, the best option would be to receive signals and implement ideas manually, since a person, even with little experience, can trade quite effectively according to the strategy, but a machine cannot.

Of course, a machine can trade when a person is sleeping, but that is another story.

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