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Module 7 · Practice and Limitup tools

Using Limitup signals the right way

How signals are generated, reading the track record honestly, sizing a signal and what not to do.

12 min

What a signal is

A is a message the scanner sends when it sees a predefined rule being met. For example: "after a long decline, a descending trendline was broken upward on volume". The rule is applied the same way every time, without emotion: the scanner doesn't get tired, doesn't get scared and never says "this time is different".

Two things to be clear about from the start:

  • A signal is about probability, not outcome. Every rule loses from time to time.
  • A signal is not personal advice. It doesn't know your capital, your goals or how much loss you can take.

Signals are only issued for stocks that pass the halal screen: the scanner's universe (about 1,500 stocks) is built under AAOIFI Standard No. 21, and "doubtful" or "undetermined" stocks are not in it.

How signals are generated

Limitup runs several strategies, each with its own logic and its own time window. When one fires on a stock, the others stay quiet, so there are no duplicates.

  • Rebound — price bounces off the lower Nadaraya-Watson band. Only when price is above the EMA200, so it doesn't "catch a falling knife".
  • Trendline — after a deep decline, a descending line of lower highs is broken upward on volume.
  • Launch — a from consolidation with volume confirmation.
  • Revival 1H / 15M — a slow, steady recovery after a drop and capitulation (on a one-hour and a shorter window).
  • Surge — a sharp burst of volume.

You choose which strategies reach you in the signal settings, and you can turn on "Only my watchlist stocks". With Telegram connected, signals arrive as private messages from the bot. On a free account signals appear with a delay; on Pro, in real time. That difference matters for late entries, below.

What a signal contains

Every signal has:

  • Entry — the price at which the rule fired. All percentages are relative to it.
  • SL () — the exit if the idea proves wrong.
  • TP1, TP2… () — profit targets.
  • Exit plan — what share of the position is sold at each TP, whether the stop moves to entry after a TP (breakeven), and whether there is a .
  • Hold window — how many trading days it is tracked; when it expires, the signal closes.
Signal levels (example)
$24$26$28Entry $25.00SL $24.00 (−4%)TP1 $26.50 (+6%)TP2 $28.00 (+12%)

You can read the R:R straight away: 1.5R to TP1, 3R to TP2. The numbers are illustrative.

In this example the entry is $25.00, SL $24.00 (−4%), TP1 $26.50 (+6%), TP2 $28.00 (+12%). The risk is $1 a share, so 1R = $1. To TP1 is +$1.50 = 1.5R, to TP2 +$3.00 = 3R. You can read the straight from a signal's levels; do it every time.

The "Track" button on the signals page opens the signal's chart: entry, TP/SL zones, pre-market and after-hours candles (faded), the event history, max gain and max drawdown. It also has two important buttons: "Try in demo" (the demo is pre-filled with the signal's SL/TP plan) and "Log to journal" (your result is compared with the bot's).

Reading the track record honestly

The track record page lists every signal, losers included, uncurated. To read the numbers correctly you need the definitions:

  • = wins ÷ (wins + losses). Breakeven signals (within ±0.5% after 7 days) and open ones are excluded.
  • Average outcome — the mean percentage across all closed signals. It matters more than the win rate.
  • — the sum of winning percentages ÷ the sum of losing percentages.
  • These are signal-level figures: equal weight per signal, no commission, no position sizing. Stops are assumed to fill exactly at the stop price.

The rest of the lesson — with a free account

Sign up to read the lesson to the end: a 7-question quiz, a practical task, and your progress is saved.

Later in this lesson

  • Using a signal with your own rules
  • Position sizing on a signal
  • What not to do
  • Demo first, then compare
  • Limitations
  • Short checklist
  • A 7-question quiz (60% to pass)
  • Practical task: Check a signal against your own rules

Full curriculum