# Signal Algorithm

The Signal algorithm places orders on the exchange based on trading signals received from Telegram channels. MoonTrader's built-in Telegram bot monitors the specified channels and automatically places an order when a signal arrives — using the parameters from that signal: entry price, Take Profit, and Stop Loss.

The algorithm does not analyze the market on its own — it relies entirely on external signals. You decide which channels to trust and how to parse their messages; the algorithm handles execution.

***

### How the Algorithm Works

#### How It Works

1. **Receiving a signal**

   BotClient connects to your Telegram account and monitors the selected channels. When a new message appears in a channel, the bot parses it according to the configured parsing rules and passes the signal to the algorithm.
2. **Latency check**

   The algorithm checks how fresh the signal is. If more time has passed since publication than the value set in Max Signal Latency — the order is not placed. The same check applies to exchange data latency.
3. **Placing an order**

   If all checks pass, the algorithm places an order using the direction, type, size, and price from the signal and algorithm settings.
4. **Position management**

   Once the order is filled, Take Profit and Stop Loss are activated. Priority logic:

   | In signal     | In algorithm  | Result                          |
   | ------------- | ------------- | ------------------------------- |
   | TP/SL present | No TP/SL      | TP/SL are not placed            |
   | No TP/SL      | TP/SL present | TP/SL from algorithm are placed |
   | TP/SL present | TP/SL present | TP/SL from signal are placed    |

***

### Setup: Configuring BotClient

Before running the algorithm, you need to connect your Telegram account in BotClient and select the channels to monitor.

#### Step 1. Connect your Telegram account

1. Open BotClient and go to **Profile → Telegram Profile**.
2. Click **Login**.
3. Enter your phone number.
4. Enter the code from Telegram.
5. Enter your password if two-factor authentication is enabled.

Once authorized, the **Profile → Telegram Profile** section will show the `AUTHENTICATED` status, account name, and phone number.

#### Step 2. Select channels to monitor

1. Go to **Algorithms → Signals → Channels**.
2. Select the channels whose signals you want to process.
3. Click **Execute**.

#### Step 3. Configure parsing rules (optional)

Individual parsing rules can be set for each channel: **Algorithms → Signals → Channel Settings**.

| Field                  | Description                                | Example            |
| ---------------------- | ------------------------------------------ | ------------------ |
| Words to ignore        | Words that cause the message to be ignored | `SCAM, CALLED`     |
| Words to buy           | Words indicating a buy signal              | `BUY, LONG`        |
| Words to sell          | Words indicating a sell signal             | `SELL, SHORT`      |
| Words to spot market   | Words identifying spot market              | `SPOT`             |
| Words to USDT-M market | Words identifying futures market           | `FUTURES, USDT-M`  |
| Words to COIN-M market | Words identifying COIN-M market            | `DELIVERY, COIN-M` |

After setup, BotClient will monitor the selected channels and automatically forward signals to all connected cores.

#### Signal format

By default, BotClient recognizes signals in the following format:

```
Binance
USDT-M
sell galausdt
tp 3%
sl 4%
```

The exchange and market type lines determine where the order is placed. Direction, pair, Take Profit, and Stop Loss are taken directly from the signal text.

> ⚠️ Other signal formats are not currently supported.

> For full BotClient installation and feature details, see the [BotClient](/en-moontrader-docs/tips-and-recommendations/bot-client-managing-moontrader-via-telegram.md) section.

***

### Algorithm Settings

#### Algorithm Parameters

#### Channels

Enter the names of the Telegram channels from which the algorithm will receive signals.

A single Signal algorithm can listen to multiple channels at the same time. For different strategies, it is convenient to create separate algorithms with different channel sets.

> ⚠️ A channel must be added and activated in BotClient — otherwise no signals from it will be received.

#### Max Signal Latency

The maximum time in seconds the algorithm will wait for a signal. If the signal is not received within this period — it is ignored.

#### Do Not Trigger If Active

When enabled, the algorithm does not process a new signal while an active order from the previous signal is still open. The next signal will only be accepted after the previous order is cancelled.

***

> If the algorithm is set to Buy but the signal arrives with direction Sell — the order will not be placed.

***

### Contact and Support

If you have questions about configuring the algorithm or would like to suggest improvements, please reach out to [support](https://t.me/moontrader_support_en).


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