Altcoin Rules
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
Altcoin Rules is Alpha Factory's 8-indicator scoring system that evaluates whether conditions are favorable for buying an altcoin, combining Risk Wave, RSI, Fear & Greed, token unlocks, and more into a single composite score.
Altcoin Rules is an 8-indicator framework built into Alpha Factory that helps investors evaluate whether market conditions favor buying a specific altcoin.
The 8 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.
Related Tools on Alpha Factory
Related Terms
Risk Wave
Risk Wave is Alpha Factory's proprietary market risk indicator that measures cycle risk using volatility, trend analysis, and market structure to produce a 0-100 risk score.
Fear and Greed Index
The Crypto Fear and Greed Index measures market sentiment on a scale of 0 (extreme fear) to 100 (extreme greed), helping investors gauge whether the market is overheated or undervalued.
RSI (Relative Strength Index)
RSI is a momentum indicator measured from 0 to 100 that shows whether an asset is overbought (above 70) or oversold (below 30), helping traders identify potential reversal points.
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