Signals vs Bots

The Two Building Blocks

Every automated trade in RelayDesk starts with two components working together:

Signal → The trigger (what and when to trade)

Bot → The risk manager (how to trade safely)

Understanding this separation is the key to building powerful, flexible automation.

What is a Signal?

A Signal defines what you're trading and when to enter. It answers: "What symbol, which direction, and when?"

Key characteristics:

• Each Signal has a unique webhook URL
• Signals specify the underlying symbol (SPY, QQQ, etc.)
• When TradingView hits the webhook, the Signal fires
• One Signal can trigger multiple Bots simultaneously
• Signals don't know about position size, exits, or risk—that's the Bot's job

Direction options:

• Long — Always triggers call/long trades
• Short — Always triggers put/short trades
• Defer to Bot — The Bot decides the direction, allowing one Signal to power both long and short setups

Think of it like: A Signal is an announcement: "SPY is ready to trade NOW." It tells you what and when, but the Bot decides how much risk to take and how to manage the position.

What is a Bot?

A Bot is your risk management engine. It answers: "How much should I risk, and how do I protect the position?"

Key characteristics:

• Bots listen to a specific Signal
• Each Bot has its own risk configuration (size, exits, daily caps)
• Bots are tied to a specific broker connection
• Multiple Bots can listen to the same Signal
• Bots handle everything after entry: take profits, stop losses, position sizing, loss limits

Think of it like: A Bot is your risk manager. When the Signal announces an opportunity, the Bot decides: "I'll take 3 contracts, set a 30% take profit, -25% stop loss, and I won't exceed my $500 daily loss cap." Different Bots can apply different risk rules to the same opportunity.

Why Separate Them?

This separation gives you flexibility that combined systems can't match:

1. One Signal, Multiple Risk Profiles

Your TradingView strategy fires once for SPY. But you might want to:

• Trade conservatively on your live account
• Trade aggressively on your paper account to test limits
• Run different exit strategies to see which performs best

With separated Signals and Bots, you create one Signal and attach multiple Bots—each applying its own risk management.

2. Easy Testing

Want to test a new exit strategy? Create a new Bot on the same Signal. Run it in paper mode alongside your live Bot. Compare results without changing anything about your TradingView setup.

3. Broker Flexibility

Different Bots can use different broker connections. Run one Bot on your paper account for testing while another runs on live. Same Signal, different risk profiles.

4. Long and Short from One Signal

Set your Signal to "Defer to Bot" and create two Bots—one configured for longs, one for shorts. Same TradingView webhook, both directions covered.

How They Work Together

Here's the flow when a trade happens:

TradingView Alert Fires

↓

Hits Signal Webhook URL

↓

Signal Fires (SPY, for example)

↓

All Active Bots Listening to This Signal Wake Up

↓

Each Bot Applies Its Risk Rules and Executes

↓

Orders Placed with Position Size, Exits, and Risk Controls

Example Setups

Setup 1: Getting Started (1 Signal, 1 Bot)

You have one TradingView alert for SPY longs.

• Signal: "SPY Long" (SPY, Long direction)
• Bot: Paper account, 2 contracts, 30% TP / -25% SL, $300 daily loss cap

This is where everyone should start.

Setup 2: Paper + Live (1 Signal, 2 Bots)

You trust your strategy and want to run it live while keeping a paper version for comparison.

• Signal: "SPY Long"
• Bot A: Paper account, 5 contracts, $1000 daily cap (testing)
• Bot B: Live account, 2 contracts, $400 daily cap (conservative)

Same TradingView alert triggers both. Different risk profiles for each.

Setup 3: Testing Exit Strategies (1 Signal, Multiple Bots)

You want to find the best exit configuration for your SPY entries.

• Signal: "SPY Long"
• Bot A: 20% TP, -15% SL (tight risk)
• Bot B: 40% TP, -25% SL (standard risk)
• Bot C: Scaled exits at TP1, TP2, TP3 (runner strategy)

Same entry, different risk management. See which performs best over time.

Setup 4: Long and Short from One Signal (1 Signal, 2 Bots)

You have one TradingView alert that fires for both directions, and you want the Bots to handle it.

• Signal: "SPY Entry" (Defer to Bot)
• Bot A: Configured for Long (trades calls)
• Bot B: Configured for Short (trades puts)

One webhook URL powers both directions. The Bots decide how to trade.

Setup 5: Separate Long and Short Signals (2 Signals, 2 Bots)

You have separate TradingView alerts for long and short setups with different risk profiles.

• Signal: "SPY Long" → Bot: 3 contracts, aggressive exits
• Signal: "SPY Short" → Bot: 2 contracts, tighter stops

Each direction gets its own Signal, its own risk management.

Setup 6: Multiple Symbols (Multiple Signals, Multiple Bots)

You run the same strategy logic on different underlyings, each with its own TradingView alert and risk profile.

• Signal: "SPY Long" → Bot: 3 contracts, $500 daily cap
• Signal: "QQQ Long" → Bot: 2 contracts, $400 daily cap
• Signal: "IWM Long" → Bot: 1 contract, $200 daily cap

Each symbol needs its own Signal. Each Bot manages risk for that symbol.

Best Practices

Name Signals by symbol and direction

• ✅ "SPY Momentum Long"
• ✅ "QQQ Breakout Short"
• ✅ "SPY Entry (Defer)"
• ❌ "Signal 1"

Name Bots by what makes them unique

• ✅ "SPY Long - Paper - Conservative"
• ✅ "SPY Long - Live - Aggressive"
• ❌ "Bot 1"

Start with one Bot per Signal

Add complexity only when you need it. You can always add more Bots later.

Use paper Bots for testing

Before changing a live Bot's risk settings, test the changes on a paper Bot listening to the same Signal.

Quick Reference

Signals

• Purpose: Define the opportunity
• Answers: What symbol? Which direction? When?
• Direction: Long, Short, or Defer to Bot
• Configured in: Signal Library
• Connected to: TradingView webhook
• Contains: Symbol, direction, webhook URL
• Can have multiple? Multiple Bots per Signal

Bots

• Purpose: Manage the risk
• Answers: How many? Which exits? What's my max loss?
• Direction: Configured per Bot (if Signal defers)
• Configured in: Bots page
• Connected to: Broker & Signal
• Contains: Size, exits, risk controls, broker connection
• Can have multiple? One Signal per Bot

Next Steps

Now that you understand Signals and Bots:

1. Create your first Signal in the Signal Library (pick your symbol and direction)
2. Create a Bot that listens to that Signal (set your size, exits, and risk controls)
3. Connect TradingView to your Signal's webhook URL
4. Test in paper mode before going live

Ready to build? Head to the Getting Started Guide to set everything up step by step.