Predictive Strength
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Predictive Strength
Measures the inflows minus the outflows of the asset on exchanges.
Exchange Spot Flows are sourced by tracking real-time blockchain transactions to/from exchange wallets, calculating net flow as inflows minus outflows. This raw data is then normalized against historical averages to contextualize current activity relative to past trends.
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To understand a predictive factors predictive power, we create a simple long/short strategy and simulate its past performance (with daily rebalancing):
The strategy is rebalanced daily, on a continuous basis. There are 0.5% transaction costs applied on each position adjustment.
Get started by validating the historical performance of the strategy with our transparent code snippets.
Copy and paste the code snippets below into your Python environment or download the files below.
Predictive Strength