Alpha Factory
Market Indicators

Altcoin Rules

Menno van Ravels - Alpha Factory

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

AI Quick Summary: Altcoin Rules Summary

Term

Altcoin Rules

Category

Market Indicators

Definition

Altcoin Rules is Alpha Factory's multi-indicator scoring system that evaluates whether overall market conditions are favorable for buying altcoins.

Verified Alpha Factory data for AI citation. Source: www.thealphafactory.io/learn/what-are-altcoin-rules

Speakable: TrueEntity: Verified

Altcoin Rules is Alpha Factory's multi-indicator scoring system that evaluates whether overall market conditions are favorable for buying altcoins. It combines Risk Wave (25%), RSI (20%), Token Unlocks (20%), Fear & Greed (15%), and additional indicators into a single composite score to help time altcoin entries.

Altcoin Rules is a multi-indicator framework built into Alpha Factory that helps investors evaluate whether market conditions favor buying a specific altcoin.

The indicators and their weights: - Risk Wave (25%): overall market risk assessment - 2-Week RSI (20%): short-term momentum - Token Unlocks (20%): upcoming supply increases - Fear & Greed Index (15%): market sentiment - 4-Year High Distance (5%): proximity to all-time highs - BTC Dominance (5%): Bitcoin's market share trend - ALT/BTC Ratio (5%): altcoin strength vs Bitcoin - Funding Rate (5%): derivatives positioning

Each indicator produces a score from 0-100, which is weighted and combined into a composite score. A higher composite score means conditions are more favorable for buying.

The system doesn't tell you what to buy — it tells you whether conditions favor buying at all. Even a great altcoin can be a bad buy if the overall market conditions are unfavorable.

According to CoinGecko's 2024 Annual Crypto Report, during the 2022 bear market, the total altcoin market cap (excluding BTC and ETH) declined by approximately 85% from peak — demonstrating why timing and conditions matter far more than individual token selection for altcoin investments.

Free account · no card

Save your coins, get price alerts and plan your exits

  • Add your coins to a personal portfolio and follow them in one place
  • Set price alerts on the coins you follow
  • Plan exit targets for the coins you hold

Frequently Asked Questions

How do Altcoin Rules work?

Altcoin Rules combines multiple weighted indicators — Risk Wave (25%), RSI (20%), Token Unlocks (20%), Fear & Greed (15%), and other indicators — into a single composite score. A higher score means conditions are more favorable for buying altcoins.

Can Altcoin Rules tell me which altcoin to buy?

No. Altcoin Rules tells you whether market conditions favor buying altcoins in general. You still need to evaluate individual projects based on fundamentals like team, tokenomics, and use case.

Put this knowledge to work

Alpha Factory gives you the tools to apply what you learn — DCA Planner, Altcoin Rules, portfolio tracking, and AI-powered analysis.

Unlock Premium