trading
FynovScore Explained: How Our AI Trading Signal Works
Most signals hand you a number and no reason. The FynovScore is built to be meaningful — four measurable inputs (momentum, news sentiment, social volume and macro) combined into one 0–100 score you can actually act on. Here's how it works.
Why We Built FynovScore
Most trading signals give you a number with no explanation. A moving average crossover fires — but why now? What changed? FynovScore was designed to be meaningful: four measurable dimensions, each contributing to a single score you can act on.
The Four Components
1. Price Momentum
Relative strength over 7, 14 and 30 days, normalised against sector peers. A Bitcoin that outperforms the broader crypto market scores higher than one that merely tracks it. Momentum is mean-reverting — extreme readings in either direction are weighted with caution.
2. News Sentiment
We process English-language financial news via NLP classification (positive / neutral / negative) and weight articles by source authority and recency. A single negative headline from a major outlet counts more than ten neutral ones from aggregators.
3. Social Signal Volume
Unusual spikes in discussion volume — Twitter/X, Reddit, Telegram — can precede price moves. We track volume change, not raw volume, to distinguish genuine interest from noise. A 10x spike in a 24-hour window is scored differently from sustained baseline activity.
4. Macro Context
Risk-on / risk-off environment (DXY, VIX, 10Y yield direction), sector rotation signals and correlation to major indices. In a high-VIX environment, even strong individual momentum scores are discounted.
How to Read the Score
Fynov maps the score to an informational stance — never an instruction to trade:
- 56–100 — Bullish: Strong positive momentum across multiple signals.
- 41–55 — Neutral: Mixed signals, no clear directional bias.
- 0–40 — Cautious: Bearish pressure across multiple dimensions.
What FynovScore Is Not
It is not a guarantee of future returns, and it is not a buy, hold or sell recommendation. It is a structured way to prioritise attention across a large watchlist. Use the score alongside your own research and risk management rules.
FAQ
What goes into the FynovScore?
Four measurable inputs: price momentum (vs sector peers), news sentiment (NLP-classified and source-weighted), social signal volume (change, not raw volume), and macro context (risk-on/off, VIX, yields).
What score counts as bullish?
56–100 reads as Bullish, 41–55 as Neutral, and 0–40 as Cautious. The bands map the score to a stance — they are not buy, hold or sell instructions.
Should I follow the FynovScore blindly?
No. It's a structured way to prioritise attention across a large watchlist, not an order. Use it alongside your own research and risk-management rules.