> For the complete documentation index, see [llms.txt](https://quanthiveai.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quanthiveai.gitbook.io/docs/tradingtools/alpha-traders-flow-signals/traders-profitability-index-tpi.md).

# Traders' Profitability Index (TPI)

<figure><img src="https://i.ibb.co/sGDSdZx/tpi.png" alt="" width="563"><figcaption></figcaption></figure>

The **Traders' Profitability Index (TPI)** is a proprietary metric developed by QuantHive to help traders quickly assess the confidence and positioning of **top-performing on-chain wallets,** also known as Alpha Traders, for any given token.

Rather than relying on short-term P\&L snapshots, TPI is derived from an extensive analysis of wallet behavior over their **entire trading history**, ensuring that only consistently profitable wallets (top 2%) are considered. This eliminates noise from lucky wins or fluke trades and focuses on **sustained trading performance**.

## **How TPI Works**

TPI is calculated by comparing the **buy vs sell volume** from Alpha Traders for a particular token. A higher TPI score indicates strong buy-side activity, suggesting these elite wallets are accumulating the token. A lower score reflects increased selling activity, implying reduced conviction or distribution.

* **TPI Score Range:** 0 to 100
  * **55+**: Strong accumulation (high buy volume)
  * **45–55**: Mixed or neutral sentiment
  * **<45**: Distribution (higher sell volume)

TPI is updated in **real-time**, ensuring traders can catch shifts in sentiment as they happen.

## **Why TPI Matters**

* **True Alpha Filtering:** Only trades from the most consistently profitable wallets are included.
* **Clear Signal Strength:** A simple numerical scale lets you quickly understand market behavior.
* **Noise Reduction:** TPI focuses on volume from wallets with proven track records, not speculative short-term activity.

TPI is your alpha radar, giving you a unique look at what the top 2% of on-chain traders are doing. Use it to time entries, avoid traps, and sharpen your edge in both spot and perp markets.