Syntalium Wiki

How to Interpret Crypto Market Scores

TL;DR

Interpretation matters more than the number itself. Define policy actions for each score band before trading.

Clear explanation

A common mistake is reading scores as direct buy or sell commands. Institutional use is policy-driven.

Assign each band to clear actions: normal participation, caution mode, or defense mode.

Track outcomes by score regime to improve rules without hindsight bias.

Technical example: policy map

A desk uses three bands with fixed risk budgets and avoids forcing trades in low-score periods.

Define per-band limits pre-open.
Map live score to active policy.
Trigger alerts on band transitions.
Review weekly PnL by score band.

ASCII model

Score feed -> Policy bands -> Position sizing -> Trade frequency -> Review
 0-49      defensive         low             sparse          protect capital
50-69      caution           medium          selective       preserve expectancy
70-100     favorable         normal          active          harvest edge

Weak vs strong interpretation

Practice	Weak	Institutional
Decision style	Ad hoc	Policy-driven
Sizing	Inconsistent	Band-based
Review	PnL only	PnL + process

Internal links

Market Status reference
Pair score interpretation with regime labels.
Verify published context
Confirm historical context integrity before review.
What is Market Score
Understand score construction before interpretation.
Risk management in crypto
Convert interpretation into hard limits.

FAQ

Should rules differ by asset?

Yes. BTC and high-beta alts need different thresholds and sizing.

How often should policies be recalibrated?

On a regular schedule, unless clear regime change requires earlier adjustment.

Can interpretation be fully automated?

Partly. Governance still needs human oversight and exception handling.