Garagebigboss's Lab

Methodology (v1 — spot-based research prototype)

The Garagebigboss Index is a 0–100 research metric that attempts to summarize recent spot market behavior. In this prototype, the engine uses Binance US spot data for pairs such as BTCUSDT and ETHUSDT and derives a set of sub-indices (trend, volatility, liquidity and stress) before aggregating them into a single headline number.

The Trend Index summarizes recent price direction using a weighted blend of roughly 24h, 72h and 7d returns. Strong and persistent downside moves push the trend score toward the lower end of the scale, while consistent upside moves push it higher. The Volatility Index compares the last 24h realized volatility to a typical 7-day baseline to describe whether the market is trading in a quieter-than-usual, normal or unusually noisy regime.

The Liquidity Index is a proxy based on volume and volatility: 24h trading volume is compared to its recent 7-day average and then interpreted in the context of current volatility. Higher relative volume and moderate volatility are treated as more supportive liquidity, while very high volatility and weak volume tend to lower the liquidity score. The Stress Index combines volatility, directional bias and liquidity: stress rises when volatility is elevated, price action is strongly biased in one direction and liquidity appears thinner, as these environments are more prone to squeezes and forced de-risking.

The main Garagebigboss Index combines these sub-indices into a single 0–100 score. In the current research version, trend is the primary driver, lower stress is rewarded and volatility that is too high or too low is penalized relative to more moderate conditions. As a rough internal scale, values near 0 correspond to market conditions that the model classifies as a strong downside, risk-off regime, values around 50 as a more balanced, two-sided environment and values near 100 as a strong upside, risk-on regime. These labels are descriptive of the model's internal state only and are not trade instructions. This prototype is for research, may be incomplete or inaccurate, and may evolve over time as more data sources and refinements are added.

These indices and explanations are provided for informational and research purposes only. They do not constitute investment, financial or trading advice and are not a recommendation or solicitation to buy, sell or hold any asset or to engage in any particular strategy. The index is a research metric intended to describe how this model sees market conditions; it is not designed or intended to be used on its own for entries, exits, leverage decisions or position sizing. The author of this project is acting solely as a researcher and does not provide individualized investment advice. Any use of this information in connection with actual trading is entirely at your own risk and responsibility.