Why do I believe signal-based trading will become the mainstream?

Why do I believe signal-based trading will become the mainstream?

As meme trading becomes increasingly PvP, it’s getting harder and harder for regular retail traders to make a profit. Meanwhile, the big players on Twitter seem to be printing money with ease — creating a stark contrast.

“Why is it so effortless for you to make money, while I haven’t had a single green day since I started?”

Of course, 90% of KOLs on Twitter are just clout-chasing scammers. But for those with transparent on-chain wallets and clear, disciplined trading logic — the real OGs — I can only feel fear, awe, and respect.

Yes, there’s a bit of “luck money” involved, but anyone consistently making profits must also be grinding and using the right method. Everyone has their own approach, but I’ve roughly categorized the winning styles into:

  1. PvP “Smash and Dump” style — These players grab heavy bags early in microcaps or pre-launch tokens (like Pump.fun). Once it pumps, they dump. It’s basically a one-shot kill and operates just like dev-backed launch groups.
  2. Narrative CX (shill-and-hold) style — They buy into a narrative early, build a community, and hold until the hype peaks — then sell into the noise.
  3. Technical trading style — These folks master wallet analysis, token distribution, and data monitoring. With technical edges, they see earlier or know more than others — giving them the advantage in decision-making.

Back to the main point: why do I believe signal-based trading will become the mainstream?

What is a “Signal”?

Why do I believe signal-based trading will become the mainstream?

A signal refers to any indicator that suggests a strong buy/sell opportunity. These can include:

  • Smart money address activity
  • Twitter KOL call-outs
  • Breaking news
  • Large-scale Telegram/WeChat circulation
  • Suspicious market-maker wallet movements
  • Token distribution analytics
  • Binance Alpha drops

Signal-based trading uses these “signal factors” to make buy/sell decisions. This is essentially a form of the third category: technical trading.

Why is signal trading effective?

The most successful case is 0 Rich Bro @Vida_BWE. He amassed serious wealth by combining lightning-fast news detection with automated execution.

Of course, reaching his level of technical sophistication is hard — but the underlying strategy is still highly effective.

Let’s talk about scenarios you’ll actually face:

  1. If big on-chain names like DNF, POW, or 0xSun ape in — this is an obvious buy signal, because their followers will pile in.
  2. If alpha traders or mega KOLs like yuyue or CalmBro tweet a call — again, that’s a buy signal due to the FOMO-driven traffic.
  3. If a contract address spreads across 10 mega TG groups or 30+ active WeChat groups — that’s a buy signal, because social momentum often equals buys.

There are many more examples. So the obvious question becomes:

Can you consistently make money by being the first to catch signals?

Yes — and no.

Signals can drastically improve your win rate, but there are three unsolvable tensions:

  1. The Signal Trinity: Volume of signals, accuracy of signals, and available capital — can’t optimize all three.
  2. Counter-strategies exist: Market makers can design anti-quant strategies to trap common signal-based behavior.
  3. Cycle dependence: In a bull market, signals are abundant and accurate. In a bear market, even the best signals often flop.

How can you profit from signal trading?

Why do I believe signal-based trading will become the mainstream?

From the points above, the challenge becomes one of optimization. It’s essentially a complex engineering problem — finding the right balance among contradictions.

As many know, Ave AI has always been low-key and dev-focused — not big on flashy marketing. But we’ve spent a long time building infrastructure for signal-based trading.

That’s also what the .ai in Ave.ai stands for: AI-driven trading (besides the fact the domain cost us a fortune 😂).

Now, our Signal Square feature is live across:

Feel free to try it out.

Why do I believe signal-based trading will become the mainstream?

While I can’t reveal too many technical details, I can share our general approach — and why Ave’s Signal Center actually works.

This is just version 1, by the way. Version 2 is in internal testing and will offer a massive performance boost.

1. Signal Coverage (“Full”)

We aim to miss zero meme gems.

We’ve built a custom AI to detect thousands of smart money wallets on Solana and BSC. We also have human researchers tracking and rotating KOLs, syndicate addresses, and market-maker wallets.

With this system, it’s nearly impossible for a real meme gem to go unnoticed. And our Signal Square confirms this — nothing worthwhile has slipped through.

2. Signal Accuracy (“Sharp”)

We introduced a “resonance signal” concept:

When multiple types of signals (e.g., smart money + Twitter + group chats) converge on a single token, it’s a much stronger buy indicator than any single signal alone.

3. Strategy Optimization (“Smart”)

We constantly iterate on how to convert signals into actual profits. We work closely with top partners like @MemeRadar_sol and @0xJason_btc (Ave provides their data and trading APIs).

The idea: signals only shine when paired with the right trading strategy. Whether it’s “double and exit” or “laddered DCA,” strategies define execution.
We believe on-chain trading will evolve into quant-style systems, driven by signal factors and adaptive strategy layers.

Today, many top traders manually collect and monitor wallet addresses. But let’s be honest — that’s not scalable or user-friendly.

Why should everyone do the same tedious job, when a data-rich platform can do it for you?

Delivering ready-to-use signals is our way of democratizing access to alpha.

And here’s a subtle takeaway for those who get it:

What does it really mean when a Tier-1 platform with nearly 1M daily active users like Ave.ai starts pushing trading signals? 😋

For those with their own tools and skills, we welcome you to build with cloud.ave.ai — offering Binance-grade APIs for both data and execution. You can use it to create your own app or trading system.

One year ago, I predicted Pump.fun would become a major launchpad for VC coins — turned out to be true. Today, I’m making a new prediction: signal trading is going to explode.

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