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What Is Market Score in Crypto?

TL;DR

Market Score is not a target price. It is a context score used to calibrate risk exposure and trade selectivity.

Clear explanation

Market Score compresses multiple features into one interpretable number, usually on a 0 to 100 range.

Higher scores suggest cleaner structure and lower friction. Lower scores signal disorder and larger whipsaw risk.

Institutional desks map score bands to pre-defined policies so risk decisions stay consistent.

Technical example: score decomposition

Score opens at 76 due to coherent flow and moderate volatility, then drops to 52 when entropy rises.

  1. Normalize each feature to common scale.
  2. Apply model weights and entropy penalties.
  3. Map composite value to policy bands.
  4. Log transitions in SNAP for audit.

ASCII model

vol_z ----\
flow_delta --> Composite model --> Market Score --> Risk policy
entropy --/
taker_ratio -/

Score bands and operating posture

Score bandInterpretationRisk posture
70-100Coherent structureNormal sizing within limits
50-69Mixed evidenceReduced size, tighter invalidation
0-49Disorder dominatesDefensive or no-trade

Internal links

FAQ

Is a high score a guaranteed win?

No. It improves context quality but outcomes remain probabilistic.

Should thresholds stay fixed forever?

No. Recalibrate with out-of-sample review as market structure evolves.

Can score replace risk management?

No. Score is useful only when linked to explicit risk controls.