> For the complete documentation index, see [llms.txt](https://docs.tread.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tread.fi/bots/market-maker-bot/reference-price-modes-and-risk-controls/signal-mode.md).

# Signal Mode

<figure><img src="/files/qNCkCYrqhiZLRIdRF8o0" alt=""><figcaption></figcaption></figure>

Signal Mode lets the Market Maker bot quote around your **native exchange mid price**, adjusted by a by the Relative Strenght Index (RSI) technical indicator from a reference market. Limit prices move with the indicator so you can lean against overbought/oversold conditions while still providing liquidity.

***

### Overview

In Signal Mode, the bot still posts limit orders on the pair and exchange you chose, but the **level** of those orders is shifted by the current **RSI (Relative Strength Index)** of a selected **signal pair**. The signal pair is in the form `Pair@Exchange` (e.g. `BTC:PERP-USDT@Binance` or `BTC:PERP-USDT@Hyperliquid`). RSI can come from a different exchange than the one you are trading on.

* **RSI > 50 (overbought):** prices are shifted **down** → more aggressive sells, more passive buys.
* **RSI < 50 (oversold):** prices are shifted **up** → more aggressive buys, more passive sells.
* **RSI = 50 (neutral):** no RSI shift; behaviour is like Mid Price with your chosen spread only.

So you are still **market making on your exchange**, but your quotes are **tilted by the indicator** to fade short-term extremes.

***

### How It Works

1. **Choose Signal Mode** in the Reference Price selector (alongside Mid, Grid, Reverse Grid, Blend).
2. **Pick a signal** from the dropdown. The list shows only **signal pairs that match the base asset** of your trading pair (e.g. if you trade `ETH:PERP-USDT`, you see signals like `ETH:PERP-USDT@Binance`, `ETH-USDT@OKX`). Each option is labeled like “BTC:PERP-USDT · RSI” and is tied to a specific exchange’s RSI feed.
3. **Set the spread** (see below). The bot then sets limit prices as:\
   **native mid price × RSI adjustment × spread multiplier.**

The **RSI adjustment** is:

* Formula: `(1 - (RSI - 50) / 10000)`\
  So:
  * RSI = 50 → factor **1** (no shift).
  * RSI = 70 → factor **0.998** (prices down 20 bps).
  * RSI = 30 → factor **1.002** (prices up 20 bps).
* The divisor **10000** gives a **maximum ±50 bps** shift when RSI is at 0 or 100. Between 30 and 70, the shift is ±20 bps.

Both buy and sell limits use the **same** RSI factor (prices move in one direction), and your normal spread (buy below mid, sell above mid) is applied on top of that.

***

### Availability

* **Availability:** If no signals exist for your pair’s base asset, Signal Mode is disabled for that pair; you must select an account and a pair first, and only pairs with at least one matching signal show the Signal option.
* **Exchanges:** RSI is supported for a fixed set of venues (e.g. Binance, Bybit, OKX, Bitget, Gate, and Hyperliquid)

***

### Spread in Signal Mode

* **Range:** **3 bps to 20 bps** (no negative spread in the UI).
* **Marks:** 3, 5, 10, 15, 20 bps.
* The spread is applied **symmetrically** around the RSI-adjusted mid: buy limit = adjusted mid × (1 − spread), sell limit = adjusted mid × (1 + spread), with spread in decimal (e.g. 10 bps = 0.001).

So Signal Mode combines:

* **RSI tilt:** ±50 bps max (from the formula above).
* **Your spread:** 3–20 bps for margin and fill control.

***

### Pros and Cons

**Pros**

* Quotes adapt to RSI in real time without changing the reference price mode.
* Keeps liquidity provision on your chosen exchange; only the level is signal-driven.
* Simple rule: high RSI → lower quotes, low RSI → higher quotes.
* Works with the same risk controls (e.g. Stop Loss, optional Take Profit) as other Market Maker modes.

**Cons**

* **Depends on signal availability:** If the RSI feed has no data for your pair/exchange, the limit price expression can evaluate to “not available” and the bot may not place or update orders until data exists.
* Signal is from a **reference market** (possibly another exchange); it may lag or diverge from the exchange you trade on.

***

### Relation to Other Modes

* **Mid Price:** No RSI; quotes are purely mid ± spread. Signal = Mid + RSI adjustment.
* **Grid / Reverse Grid:** Anchor is your own fills (exec / exposure price), not RSI. Different use case (mean reversion vs. indicator tilt).
* **Blend:** Blends **prices** (native mid vs. reference exchange price). Signal blends **native mid** with an **indicator value** (RSI) to shift levels; no second exchange price in the formula.