Sigma Explained

Sigma controls how unusual a price move must be before Aurono considers it worth acting on.

You do not need statistical knowledge to use sigma correctly.

Think of sigma as a strictness dial.

Low sigma = react quickly
High sigma = wait for stronger evidence

BUY and SELL sigmas are independent and serve different purposes.

What Is Sigma (Without Math)

Aurono looks at how much price usually moves within one candle.

Most candles move a little. Some candles move a lot.

Sigma tells Aurono:

“Only trigger when the move is bigger than normal by this amount.”

So sigma answers one question:

How extreme is extreme enough?

A Simple Analogy

Imagine daily weather:

A normal day is mild
A storm is unusual

Sigma is the rule that says:

1 — “This feels unusual”
2 — “This is clearly abnormal”
3 — “This almost never happens”

Aurono reacts only when price behaves like a storm, not like normal weather.

BUY Sigma (Downward Moves)

BUY sigma applies only to price drops.

Lower BUY sigma — buys on small dips
Higher BUY sigma — buys only on deep drops

What Low BUY Sigma Does

Many BUY signals
Signals cluster during downtrends
EUR gets consumed quickly

What High BUY Sigma Does

Fewer BUY signals
Only deep pullbacks trigger
Capital lasts longer

Rule of thumb: If you see many ignored BUY triggers, BUY sigma is too low.

SELL Sigma (Upward Moves)

SELL sigma applies only to price rises.

Lower SELL sigma — SELLs happen early
Higher SELL sigma — SELLs wait for stronger moves

What Low SELL Sigma Does

Early SELL signals
Many SELLs happen before enough coins are accumulated
ACB protection often blocks execution

What High SELL Sigma Does

Fewer SELL signals
More patience
Higher chance of selling above ACB

Rule of thumb: If many SELL triggers are ignored due to no inventory, SELL sigma is too low.

BUY and SELL Sigmas Are Independent

Aurono does not use one sigma for both sides.

You can have:

Conservative BUYs (high BUY sigma)
Aggressive SELLs (low SELL sigma)

Or the opposite.

This separation is intentional and powerful.

What Sigma Is Not

Sigma is not:

A prediction
A timing guarantee
A profit setting

Sigma only controls how picky the strategy is.

General Guidance

Sigma up — fewer triggers, lower stress
Sigma down — more triggers, higher pressure

There is no “correct” sigma.

Only safe combinations.

How the Strategy Lab Helps

The Simulate tab shows you:

How many BUY and SELL signals occur
Whether capital survives worst-case accumulation
Whether SELLs fail due to inventory or ACB protection

This allows you to raise or lower sigma with confidence, not guesswork.

Final Intuition

Sigma is simply this question:

“How unusual does price movement need to be before I act?”

Aurono lets you choose the answer.