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Trading Alpha Signals

Definition

Trading alpha signals are indicators or alerts suggesting potential opportunities to generate returns exceeding market benchmarks. These signals are derived from sophisticated quantitative models, fundamental analysis, or behavioral insights, aiming to identify mispricings or asymmetric information in financial markets. They represent an edge that, when acted upon, can lead to superior risk-adjusted performance. In digital asset trading, these might originate from on-chain metrics, sentiment analysis, or technical chart patterns.