TRADING & CRYPTO Internal tool

Custom Altcoin Index and Signal Backtesting

Published crypto indices encode someone else's thesis, which makes them poor inputs to a specific strategy. We built a configurable altcoin index measured against Bitcoin on minute-level history, with backtesting so signals derived from it are validated before any capital is committed. It runs as an internal tool.

Minute
data granularity
Backtested
signal validation

The problem we were asked to solve

Published crypto indices are built for someone else's thesis. Their constituent rules, weighting and rebalancing cadence are fixed, which makes them fine as market commentary and close to useless as an input to a specific strategy — particularly for a trader whose question is narrower: how is the altcoin market moving relative to Bitcoin, under a definition of 'altcoin market' they choose themselves. Answering that requires building the index rather than reading one, and building it credibly requires minute-level history and the ability to test whether signals derived from it would have worked. Neither is available off the shelf in a form that can be modified.

What we built

01

Custom index construction

The index is built from configurable constituents and weighting against Bitcoin, so its composition is a hypothesis to test rather than a fixed vendor definition. Changing the definition is a parameter change, not a new project.

02

Minute-level historical data

Minute-resolution history is ingested from CSV sources into a purpose-built store, giving enough granularity that intraday signals can be evaluated instead of assumed.

03

Signal backtesting

Signals derived from the index are backtested against the historical series before being trusted, and can be exported as trading signals to downstream systems once validated.

Python Go Time-series processing Backtesting Custom database

What changed for the client

The trader can define what 'the altcoin market' means for their strategy, measure it against Bitcoin at minute resolution, and test whether the resulting signals hold up historically before risking capital on them. The value is the hypothesis-testing loop rather than any single index: composition questions that were previously arguments become measurements. It runs as an internal tool.

  • The trader defines what 'the altcoin market' means for their own strategy instead of inheriting a vendor's fixed composition.
  • Minute-level history makes intraday signals measurable rather than assumed.
  • Backtesting validates signals against the historical series before any capital is committed to them.
  • Composition questions that were previously arguments become measurements, since changing the index definition is a parameter change.

Want similar results?

Tell us what the process looks like today and we will tell you what can be automated — and what should not be.

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