Live Signal Monitor
Most trading systems place a stop-loss at entry and wait. TRADEOS.tech goes further: every open position runs a continuous health monitor that evaluates the original signal's vitality on a short fixed interval and acts if it degrades.
This means the system does not wait for a price stop to be hit. If the conditions that justified the trade no longer hold — the regime shifted, signal confidence decayed, order flow turned hostile — the system can exit or tighten ahead of the stop.
How it works
When a position opens, a dedicated background monitor starts for that position. On each check interval it:
- Reads live market data and signal health indicators from the pipeline
- Computes a composite live signal score across multiple independent components
- Compares the score to action thresholds
- Takes action if warranted
The monitor runs independently per position. Ten open positions means ten independent monitors, each evaluating its own signal health in parallel.
The live signal score
The score is a normalized value where a high score means the original trade thesis is still intact and a low score means conditions have deteriorated.
Multiple components feed the score, each weighted by its empirical contribution to predicting position outcomes. Components include measures of:
- Signal quality and confidence — is the original signal still strong?
- Signal freshness — has sufficient time passed that the signal has decayed?
- Regime persistence — is the market regime that justified this trade still active?
- Price performance — is the position performing in line with expectations?
- Order flow toxicity — is informed adverse order flow accumulating against the position?
- Microstructure pressure — what does the order book and modeled order flow say about near-term direction?
- Drawdown from peak — how much of the position's unrealized gain has been given back?
- Regime stability — is the regime stable or is a transition imminent?
The weighting of each component is calibrated empirically and version-stamped. Any change to the weight set requires a formal recalibration review before deployment.
Regime change integration
A Bayesian change-point detector feeds a regime transition probability into the score in real time. When this probability is elevated, regime-dependent components are penalized and stability bonuses are removed. A position opened in a trending regime that just detected a flip will see its score drop before the price move confirms the transition.
Order flow integration
A Hawkes process order flow model provides a directional flow imbalance reading. This is blended with the raw order book imbalance to produce a richer microstructure signal that accounts for the self-exciting nature of order arrival.
Action thresholds
The monitor operates on two action thresholds, both calibrated from historical position outcome data:
| Condition | Action |
|---|---|
| Score falls to critically degraded level | Force exit — signal health has collapsed |
| Score reaches strong-health level with positive P&L | Tighten stop and take a partial exit to lock in gains |
The specific threshold values are proprietary and subject to ongoing calibration.
Flash-crash protection
A single sub-threshold reading does not trigger an exit. The monitor requires multiple consecutive degraded readings before acting. This prevents a single bad tick or momentary data anomaly from closing a healthy position.
Partial exit on strength
When the score is strong and the position is in profit, the monitor locks in a portion of the position at market. The remainder continues running with a tightened stop. This ratchet happens once per position.
What this means for you
Every trade has an active guardian watching its health. You do not need to watch the screen. If market conditions shift against a position — even if price has not yet moved — the system responds.
This is distinct from the static stop-loss set at entry. That stop protects against price movement. The live signal monitor protects against signal thesis collapse: the reasons the trade was taken no longer apply, regardless of where price is right now.
Dashboard visibility
The live position monitor widget on the dashboard shows per-position score breakdowns in real time. You can see which components are dragging a position's score, whether a tighten or partial exit has already fired, and how many consecutive degraded checks have accumulated — giving full transparency into what the monitor is seeing without exposing calibration parameters.