Alpha FactoryALPHA FACTORY
CommunityCoin PlaybooksPricing
Get Full Access
Alpha Factory
Public Altcoin Rules Guide

Altcoin Rules: 8-Point Altcoin Scoring System

Altcoin Rules is Menno's weighted 8-point scoring system for analyzing altcoins before you buy. It blends cycle context, momentum, sentiment, market structure, and supply pressure into one cleaner read so you can stop guessing whether a setup looks attractive, neutral, or overheated.

Unlock PremiumSee public proofRun free audit

Use the proof page if you want receipts first. Use the free audit if you want the same strategy lens applied to your own holdings.

thealphafactory.io/portfolio/altcoin-rules
Premium view
Altcoin Rules screenshot
6 core indicators2 live modifiersHistorical tops and bottoms

Live tracked-coin snapshot

A public slice of the same Altcoin Rules engine members use.

This public board shows a compact live read on a few tracked coins. Members get the full per-indicator breakdown, history, and deeper context for any supported asset.

Loading snapshot...Server-cached scores
Public view: core score + zone only.Premium view: full indicator stack, history, and any supported coin.

One core score

See low, neutral, or high risk at a glance instead of guessing from one chart.

Why the score moved

Open each indicator to see whether the shift came from cycle risk, momentum, sentiment, or supply pressure.

Historical context

Compare today's core score with prior bottoms and tops instead of reacting to one noisy candle.

What goes into the score

One framework, six core signals plus two live modifiers.

The real tool combines cycle context, momentum, sentiment, market structure, and supply pressure. That is why it is more useful than staring at one indicator in isolation.

Risk Wave

Cycle position versus the long-term average.

2-Week RSI

Momentum without the daily noise.

4Y High Distance

How far the market is from major cycle highs.

Dominance

Whether market share looks stretched or cheap.

Fear & Greed

Sentiment context when the market gets euphoric or fearful.

ALT/BTC Ratio

How overheated altcoins look relative to Bitcoin.

Funding Rate

Modifier

Leverage pressure when traders get too one-sided.

Token Unlocks

Modifier

Supply-risk pressure that can hit altcoins fast.

How Menno uses it

The score is not a magic signal. It is a risk map.

Lower scores usually mean more patience is rewarded for buyers. Higher scores usually mean more caution is warranted. The tool is there to improve discipline, not remove judgment.

0-30

Accumulation zone

Usually where Menno is more interested in building positions than chasing strength.

30-70

Patience zone

Usually where position sizing, selectivity, and waiting matter more than excitement.

70-100

Danger zone

Usually where risk is elevated and capital protection matters more than upside stories.

Next step

Choose your path based on what you need right now.

Want proof first? Open the public receipts. Want to test the thinking on your own coins? Run the free audit. Already convinced? Unlock Premium and open the real Altcoin Rules tool.

See public proofRun free Alpha ScanUnlock Premium

Not financial advice. The tool is a decision framework, not a guarantee.

Also try our DCA Simulator — backtest dollar-cost averaging strategies on any coin.

Alpha Factory members get real-time altcoin scoring across 200+ coins

Unlock Analysis
Menno van Ravels - Alpha Factory

By Menno van Ravels - 13 years in crypto, 3 bear markets survived, zero paid promotions

Last reviewed: 2026-05-02

Altcoin Rules is a composite risk framework that turns 8 weighted market inputs into one public score from 0 to 100. Scores below 30 signal accumulation zones; 30–70 indicate patience zones; above 70 warns of danger zones requiring capital protection. Updated: 2026-05-02. The point is to make heat, patience, and capital protection easier to see before emotion takes over.

Methodology

The public snapshot blends cycle context, momentum, distance from prior highs, sentiment, leverage pressure, market structure, and token-supply risk into a single view. It should be treated as a risk map for sizing and patience, not as a stand-alone entry signal or a guarantee that a coin is safe.

Primary Sources

CoinGecko API docs: historical price data

Used for price-history and market-structure context when comparing current conditions against prior ranges.

CoinGlass docs: market and funding data

Supports leverage and funding-rate context when the market gets crowded on one side.

CoinMarketCap Fear and Greed Index

Public sentiment signal used as one input rather than a stand-alone buy or sell command.

Tokenomist unlock calendar

Supply-side context matters for altcoins because large unlocks can change risk even when price still looks strong.

Use This With

Crypto Risk Management

Use the score as a risk map inside a larger portfolio framework, not as a magic signal.

DCA Simulator

Compare what steady buying would have looked like before deciding how aggressive to be.

Bitcoin Coin Page

Cross-check the market backdrop against a single-asset research page and DCA lens.

Source: Alpha Factory Altcoin Rules · 2026-05-02

Altcoin Rules Checklist

Prefer the lighter version? Start with the five checklist rules before you open the full score.

This is the stripped-down checklist version of Altcoin Rules: five high-signal indicators, buy and sell zones, and a quick reference card you can keep nearby when the market gets noisy.

1

Risk Wave Score

30%

A proprietary composite of on-chain and macro signals. Above 70 = risk-off zone (take profits). Below 30 = accumulation zone. This single number replaces 10 separate tabs.

Buy: < 30 · Hold: 30-70 · Sell: > 70

2

RSI (Relative Strength Index)

20%

Classic momentum indicator, but I use the weekly RSI, not daily. Daily RSI whipsaws too much for serious portfolio decisions. Weekly tells you where the real trend is.

Oversold: < 30 · Neutral: 30-70 · Overbought: > 70

3 more indicators waiting

Unlock the full checklist

Enter your email to see indicators 3-5: Token Unlock Pressure, Fear & Greed contrarian strategy, and the Composite Altcoin Score. Plus the quick reference card.

Free. No spam. You will also receive our weekly market briefing.

Used by 50+ Alpha Factory members for every altcoin decision.

Want the full 8-indicator system?

Alpha Factory members get the complete Altcoin Rules system with all 8 indicators, live scoring, AI analysis, and portfolio tracking.

Unlock Premium

14-day money-back guarantee. Cancel anytime.

Related Guides

Crypto Risk Management GuideCrypto DCA Strategy GuideWhen To Sell CryptoFree Crypto Health Check

What is the Altcoin Rules Framework?

Altcoin Rules is Alpha Factory's proprietary risk framework that combines 8 weighted market indicators — including Risk Wave, RSI, dominance, funding rates, and token unlocks — into a single composite score from 0 to 100. Scores below 30 signal accumulation zones, 30-70 indicate patience zones, and above 70 warns of danger zones requiring capital protection.

Why a Scoring Framework Matters

According to CoinGecko data, over 14,000 cryptocurrencies have been listed since 2013, with the majority losing 90%+ of their value within two years (source: CoinGecko Annual Crypto Industry Report 2024). Altcoin Rules was built to filter signal from noise using 8 weighted indicators that combine market structure, momentum, sentiment, and supply-side risk into a single 0-100 composite score. The framework evaluates cycle position via Risk Wave, momentum via 2-Week RSI, distance from prior highs, market-share dominance, Fear & Greed sentiment, ALT/BTC overheating, funding-rate leverage pressure, and token unlock supply risk. Each indicator is weighted by its historical predictive value across three bear-market cycles (2018, 2022, 2025), giving recent data more influence while preserving structural lessons from earlier crashes.

Created by Menno at Alpha Factory, the system replaces watching one indicator in isolation. Instead, it combines 8 market signals into a single composite score that tells you whether an altcoin currently looks cheap, neutral, or dangerously overheated, helping you decide when to accumulate, when to be patient, and when to protect capital.

How does the Altcoin Rules scoring system work?

The Altcoin Rules scoring system works by combining eight weighted market indicators into a single composite score from 0 to 100. Each indicator captures a different dimension of market risk: Risk Wave measures cycle position, 2-Week RSI tracks momentum without daily noise, 4-Year High Distance gauges proximity to prior cycle peaks, Dominance shows whether market share is stretched, Fear & Greed provides sentiment context, ALT/BTC Ratio detects altcoin overheating relative to Bitcoin, Funding Rate reveals leverage pressure, and Token Unlocks flags imminent supply-side dilution risk. Each indicator is individually scored and then weighted based on its historical predictive value across three bear-market cycles (2018, 2022, 2025). The resulting composite score maps to three action zones: 0-30 (accumulation — conditions favor building positions), 30-70 (patience — selectivity matters more than action), and 70-100 (danger — capital protection takes priority over upside).

The 8 Weighted Indicators

  1. Risk Wave — Cycle position versus the long-term average.
  2. 2-Week RSI — Momentum without the daily noise.
  3. 4-Year High Distance — How far the market is from major cycle highs.
  4. Dominance — Whether market share looks stretched or cheap.
  5. Fear & Greed — Sentiment context when the market gets euphoric or fearful.
  6. ALT/BTC Ratio — How overheated altcoins look relative to Bitcoin.
  7. Funding Rate — Leverage pressure when traders get too one-sided.
  8. Token Unlocks — Supply-risk pressure that can hit altcoins fast.

The Three Risk Zones

  • 0-30: Accumulation zone — Conditions are calmer and building positions tends to be more interesting than chasing strength.
  • 30-70: Patience zone — Neutral territory where selectivity, position sizing, and waiting matter more than excitement.
  • 70-100: Danger zone — Risk is elevated and capital protection matters more than upside stories.

Frequently Asked Questions

What is the Altcoin Rules framework?

A weighted risk framework that combines 8 market indicators into one composite score from 0-100, covering cycle context, momentum, sentiment, market structure, and supply pressure. Created by Menno at Alpha Factory.

What are the 8 indicators?

Risk Wave, 2-Week RSI, 4-Year High Distance, Dominance, Fear and Greed, ALT/BTC Ratio, Funding Rate, and Token Unlocks. Each indicator is weighted and combined into the composite score.

Is it free?

A public snapshot showing live scores for Ethereum, Solana, Chainlink, and Sui is free on this page. The full tool with per-indicator breakdowns and any supported coin requires an Alpha Factory premium membership.

How should I use the score?

The score is a risk map, not a magic signal. Lower scores suggest accumulation opportunities, mid-range scores call for patience, and high scores warrant capital protection. It improves discipline but does not replace judgment.

Related

Risk Wave: Free Crypto Risk Indicator ExplainedCrypto Risk HubCrypto Risk IndexAltcoin Rules During Extreme FearAlpha Factory Market Report: March 2026Bitcoin Signals

Explore More

Crypto GlossaryEvery term explained simplyCoin PlaybooksDCA, risk, and profit-taking plans per coinCoin AnalysisDCA strategies for 200+ coinsBest Crypto Signals 2026Framework to evaluate signal quality and avoid hype