The Beta Gate filter is a pass/block gate on rolling OLS β of Market A simple returns on Market B. When β meets your compare condition against a threshold, the filter passes; otherwise it blocks. It never fires a buy or sell by itself.
Use it when you only want to allow other signals while A’s sensitivity to B is in range. Prefer Beta Threshold when the beta condition itself should emit a buy or sell side.
When to use it
- Only enter when ETH’s β vs BTC is above 1
- Block entries when the hedge ratio collapses
- Confirm relative-value ideas without adding a second directional rule
What you’ll set in the app
Add Beta gate under filters.
- Market B symbol — required second market (Market A defaults to the strategy primary)
- Optional exchange/timeframe overrides for A and B
- Window — return bars in the sample (default 20)
- Compare — beta >, <, ≥, ≤, or ≈
- Threshold — e.g.
1.0(default)
Missing Market B, warm-up history, or zero variance on B blocks the gate. Disabled passes.
Tips
- Beta is on returns, not raw prices, and is not limited to [−1, 1].
- There is no “side when true”—pair this with RSI, MACD, or other signal rules for direction.
- For a directional beta signal (or directional filter that must match buy/sell), use Beta Threshold.
Example
Entry filters: Beta gate, Market B = BTCUSDT, window 20, beta > 1.0. A breakout long on ETH only passes when recent returns are more sensitive than 1:1 to BTC.