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How to Interpret Crypto Market Scores (Concept Note)

TL;DR

Interpretation matters more than the number itself, but SignalX does not currently publish a live Market Score field.

Clear explanation

This page is conceptual. It describes how a future score-based policy map could work if such a field were added to the backend contract later.

A common mistake is reading any composite score as a direct buy or sell command. Professional use is policy-driven.

Until a live score exists, use the published market-state contract and verified SNAP payload instead.

Technical example: hypothetical policy map

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

  1. 01Define per-band limits before the session.
  2. 02Map a hypothetical score to an active policy band.
  3. 03Trigger alerts on conceptual band transitions.
  4. 04Review whether a future score would improve governance before exposing it publicly.

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

PracticeWeakProfessional
Decision styleAd hocPolicy-driven
SizingInconsistentBand-based
ReviewPnL onlyPnL + process

Related pages

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.