# Entry Signal Builder - Create Trading Entry Signals **Last Updated**: 2026-03-17 **Version**: 1.0.0 ## How It Works ### Open the Entry Signal Builder Navigate to the Entry Signal Builder page from the strategy construction menu. This module lets you define precise entry conditions using technical indicators, combining them into a composite signal that determines when your strategy opens new positions. ### Select a Market Regime Choose a market regime from the card-style selector: Trending (momentum-following entries), Ranging (mean-reversion entries), Volatile (breakout entries), or Bespoke (fully custom). The selected regime pre-populates recommended indicator combinations and parameter ranges suited to that market condition. ### Add Entry Indicator Cards Click 'Add Entry Indicator' to create indicator cards. Each card represents one technical condition (e.g., RSI crossing below 30, MACD histogram turning positive, Bollinger Band squeeze breakout). You can add up to 5 indicator cards that work together as AND conditions for signal generation. ### Configure Indicator Parameters For each indicator card, set the specific parameters: indicator type, period length, threshold values, crossover direction, and comparison operators. Each parameter directly affects signal sensitivity. For example, a shorter RSI period (7 vs 14) produces more frequent but noisier signals. ### Define Bespoke Configuration (Optional) If you selected Bespoke mode, provide a custom name and detailed description for your regime. This mode removes all preset constraints, letting you combine any indicators regardless of traditional market regime assumptions. Use this for unconventional or multi-factor strategies. ### Preview Signal Logic Review the composite signal logic summary displayed below your indicator cards. The preview shows how all conditions combine (AND logic between cards), the expected signal frequency based on your parameters, and any potential conflicts between indicator settings that could prevent signals from firing. ### Generate the Entry Signal Click 'Start Generate' to compile your indicator configuration into executable entry signal code. The system sends your setup to the backend, which generates optimized signal detection logic. The output integrates with the LLM Market Detector for regime-aware entries and feeds into the Exit Strategy Builder. ### Validate with Backtest After generation, run a backtest to validate your entry signal against historical data. Check the signal hit rate, average entry timing relative to price moves, and whether the signal frequency matches your trading style. Iterate on indicator parameters based on backtest results. > The Entry Signal Builder creates composite entry conditions from technical indicators. All indicators use AND logic — every condition must be satisfied simultaneously for a signal to fire. Signal quality depends on appropriate indicator selection for the target market regime. ## Tips & Best Practices - Avoid adding more than 3 indicator cards unless you have a specific multi-factor thesis. Each additional AND condition exponentially reduces signal frequency, and overly restrictive entry criteria lead to missed opportunities and curve-fitting to historical data. - Match your indicator selection to the chosen market regime. Momentum indicators (MACD, RSI divergence) work best in Trending regimes, while oscillators at extremes (RSI overbought/oversold, Stochastic) are more effective in Ranging regimes. - When using Bespoke mode, document your rationale in the description field. This helps you recall why specific indicator combinations were chosen when reviewing or modifying the strategy months later. - Test your entry signal across multiple time periods and market conditions before finalizing. A signal that works perfectly in a bull market may underperform significantly during sideways or bearish periods, indicating regime sensitivity. ## Frequently Asked Questions ### What is the difference between market regimes in the Entry Signal Builder? Trending regime optimizes for directional momentum with indicators like MACD, ADX, and moving average crossovers. Ranging regime focuses on mean-reversion with oscillators like RSI and Stochastic at extreme levels. Volatile regime targets breakout entries using Bollinger Band expansion and ATR-based thresholds. Each regime pre-configures recommended indicators, but you can override any setting. ### How many indicator cards can I add, and how do they combine? You can add up to 5 indicator cards per entry signal. All cards use AND logic, meaning every condition must be true simultaneously for the signal to trigger. This design ensures high-conviction entries but requires careful balancing — too many conditions may prevent any signals from firing in live market conditions. ### What is Bespoke mode and when should I use it? Bespoke mode removes all preset regime constraints, giving you complete freedom to combine any indicators with any parameters. Use it when your strategy thesis does not fit neatly into trending, ranging, or volatile categories — for example, a multi-factor strategy that combines momentum, volatility, and volume indicators across different timeframes. ### How does the Entry Signal Builder connect to other modules? The Entry Signal Builder output feeds directly into the overall strategy pipeline. It receives market state from the LLM Market Detector (enabling regime-adaptive entries), and its generated signals are paired with exit rules from the Exit Strategy Builder. Together they form a complete entry-to-exit trading system that can be backtested and validated. ### Can I reuse entry signals across different strategies? Entry signals are generated as part of your strategy configuration. To reuse a signal setup, you can save the indicator configuration and apply it to new strategies by selecting the same regime and indicator parameters. Each strategy maintains its own independent copy of the entry signal logic. ## Important Notes > Entry signals based on technical indicators reflect historical patterns and do not predict future price movements. Signal performance varies across market conditions, instruments, and timeframes. Always validate signals through comprehensive backtesting and use proper position sizing and risk management. --- Source: https://stratcraft.ai/help/entry-signal-builder/