Methodology

No black box. Here’s the box.

Every WiseTrade signal is produced by a deterministic, rule-based engine you can audit on this page — and every factor behind a signal is shown in the app. This is exactly how it works, including what it does not do.

1. The data

Live prices, volume and market caps come from CoinGecko; candlestick history and chart data come from Binance. Market sentiment uses the alternative.me Fear & Greed index. Commodity quotes (gold, silver, oil) come from spot-price APIs and Yahoo Finance. Server responses are cached for 30–60 seconds, so what you see is effectively real time.

What we don’t use: we do not currently ingest on-chain data or social-media feeds. If a data source isn’t listed here, it isn’t in the signal.

2. The indicators

For the selected timeframe, the engine computes five classic technical indicators on the candle closes: RSI(14), MACD(12, 26, 9), MA 9/21 crossover, EMA trend and Bollinger Bands(20, 2σ), plus 7-day support and resistance. Each indicator casts a bullish, bearish or neutral vote. Trend-following indicators (moving averages, MACD) carry more weight than the mean-reversion oscillators (RSI, Bollinger), which routinely fight a strong trend.

A momentum reading — the recent % move, blended from 24h and 7d changes — joins the indicators as one more weighted vote.

3. The rules for a signal

A coin is only rated Buy or Sell when all of these hold at once:

  • Confluence — the weighted indicator votes clearly agree on a direction (mixed votes = Hold).
  • Momentum doesn’t fight it — no buying a falling tape, no selling into a rally.
  • Trend alignment — longs are only allowed above the long-term EMA, shorts only below it.
  • Liquidity floor — thinly traded coins (low volume relative to market cap) are never rated.

Sub-hourly timeframes (5m, 15m, 30m) are never rated tradable: in our backtests they have negative expectancy, so the engine stays flat there and says so rather than inventing a signal.

4. Confidence you can take literally

The confidence % is not a vibe — it is calibrated to the engine’s real backtested win rate, then scaled down for less reliable timeframes. When a signal says ~45%, signals like it have historically won ~45% of the time. We publish the calibration table on the track record page so you can check it.

A sub-50% win rate is profitable when winners are bigger than losers — that’s what the risk/reward on each signal is for.

5. Stops and targets

Risk is sized to the timeframe’s own volatility (ATR — the typical per-bar move) and anchored to market structure: the stop sits just beyond the nearest swing support or resistance, floored so it can’t hide inside the noise and capped so a distant level doesn’t blow up risk. The target reaches for the opposing level, bounded between 1.5R and 3R depending on conviction. Volatile coins get wider stops; quiet ones get tighter stops.

6. Where the AI actually is

The numbers — direction, confidence, entry, stop, target, sentiment — come from the deterministic engine above, never from a language model. A large language model writes the prose: the plain-English rationale and market briefs that explain what the numbers mean. If the model is unavailable, a templated explanation built from the same factors is shown instead. Either way, the trade math is reproducible.

7. How we validate it

  • Backtesting with no lookahead — each simulated signal only sees candles up to its decision bar; when a bar touches both stop and target, we assume the stop hit first (conservative fills).
  • Live forward tracking — every signal the production engine issues is logged and followed to its real outcome. Wins and losses are published, unedited.
  • Same engine everywhere — the backtest runs the exact code that generates live signals, so the published record tests what you actually get.

8. Honest limitations

Technical signals are probabilities, not prophecies. Backtests can over-fit and exclude slippage, fees and funding. Crypto markets can gap through any stop. Nothing on WiseTrade is financial advice — it is research tooling to help you make your own decisions, with risk you choose and control.

Now check our work

The live, unedited results of this exact methodology — win rate, profit factor, equity curve and calibration.