# KnightML

#### 1. Introduction

Learn how to use KnightML, a flexible AI-powered trading signal that adapts to different trading styles and risk levels. With customizable trading frequencies and exposure settings, KnightML allows traders to fine-tune their strategies based on market conditions and personal preferences.

#### 2. Setting Up & Accessing KnightML

**Step 1: Accessing KnightML**

* Connect Your Wallet: To start using KnightML, first connect your wallet to[ Xpanse](https://xpanse.trade/). Once connected, you'll be directed to the trading dashboard. Please note that to cover gas fees, you'll need ETH.

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Wallet connection interface

<figure><img src="/files/qU0mS8f9gBDsY1C9H6gU" alt=""><figcaption></figcaption></figure>

* Adding and Removing the KnightML Indicator: Navigate to the “AI / Indicators” tab, select “AI Strategies,” then below ‘KnightML’ click "View Signals". Select the trading pair you want and click “Add to Chart”. To remove it, click the small “X” next to the indicator's name below your chart.

#### 3. Understanding KnightML

**How KnightML Works**

KnightML generates long and short trading signals based on market momentum. Unlike rigid signal systems, KnightML allows for flexible position management, meaning traders can adjust exposure incrementally rather than committing to a full position at once.

**Signal Interpretation**

* Long Signal: A long signal indicates a potential buying opportunity. Traders may choose to enter a long position but are not required to allocate their full position immediately. Subsequent signals may reinforce or adjust the initial recommendation.
* Short Signal: A short signal suggests an opportunity to sell or enter short positions. Traders can close existing long positions entirely and initiate short trades in alignment with the signal.

This approach provides flexibility, enabling traders to make data-driven decisions that match their market outlook and risk tolerance.

#### 4. Interpreting and Using the Signals

**Example of Signal Execution**

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcc1nOsyduS5KOKsrtktZ5SS6z0sOnVGf_EBEnZrjATzOmAU96qq7KKDQ_fed0at3y5o7TS1HumXt9XiqEQLvppoM1lShxnOX-9enXRi7YlR3aQNHmXE7W1pX3Ti_XOQ57kAXTVxQ?key=rntG8GksAifjbIofEsr_FGWv" alt=""><figcaption></figcaption></figure>

1. A long signal appears → Traders can gradually open positions based on risk preferences.
2. Additional long signals may appear → Traders can choose to increase exposure or wait.
3. A short signal is issued → Traders can fully close long positions and enter short trades.

By following this method, traders can refine their position sizing and risk exposure rather than making all-or-nothing trades.

#### 5. Risk Management

**Best Practices for Using KnightML**

* Adjust Exposure: Use KnightML’s flexibility to scale into or out of positions rather than committing 100% at once.
* Confirm Signals: Combine KnightML with other indicators for stronger confirmation.
* Set Stop-Losses: Always apply stop-loss orders to manage downside risks effectively.

#### 6. Disclaimer

**Trading Disclaimer**

Trading involves risks, and the past performance of any AI models does not guarantee future results. Xpanse is not liable for losses incurred while using these indicators. Traders should be responsible for their own trading decisions and risk management strategies.

#### 7. Next Steps

**What’s Next?**

Now that you’re familiar with the WaveML model, it’s time to[ start trading](https://xpanse.trade/trade/BTC)!

For more insights, updates, and to connect with fellow traders, we invite you to join our community on[ Telegram](https://t.me/HorizonProtocol) and[ Discord](http://discord.gg/HorizonProtocol). Stay up-to-date with the latest features and share your experiences with others in the Xpanse community!


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