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Signal Design Principles

Snowtrail Signals are built following consistent design principles to ensure reliability and usability.

Core Principles​

1. Fundamental Grounding​

Signals are derived from observable fundamental data, not from price patterns or technical indicators. This ensures signals capture real-world supply and demand dynamics.

2. Point-in-Time Construction​

Signals are computed using only information that was available at the time. This prevents look-ahead bias and ensures signals can be reliably backtested.

3. Consistent Methodology​

Signal definitions are stable over time. When methodology changes are necessary, the model_version column increments. See Versioning.

4. Interpretability​

Each signal has a clear economic interpretation. Users should understand what the signal measures and what, if anything, it has been shown to coincide with.

Normalisation​

Signals are typically normalised to enable:

  • Comparison across different time periods
  • Comparison across related markets
  • Combination with other signals

Update Frequency​

Signals are updated when new underlying data becomes available, with clear documentation of the update schedule for each signal.