If you look at crypto price movements as a series of isolated events, the picture is messy. Sure, some traders can occasionally win big one-time events or thanks to the spotting of a meme-inspired trend.
However, in the long run, most of these “random” traders tend to lose.
Why? Because they have to pick the big winners to cover all the occasions when they lose their goals.
For every Shiba Inu, there were a thousand coins that did not rebound.
That is why cryptocurrency traders who they employ processes instead of trying predict events they are more likely to fill their bags in the long run.
They trade with probabilities rather than waiting for Token X to go parabolic next week. They win on aggregate numbers rather than unique attractions. If you offered them average weekly returns of more than 5% on trades … they would rip your hand out.
The table below shows the average returns after the high VORTECS ™ Scores generated by the historical analysis of Cointelegraph Markets Pro.
Good things come to those who wait
Here are two unmistakable trends. First, the higher the VORTECS ™ Score, the higher the average profitability. In other words, the more certain the algorithm is that the historical conditions around the coin are bullish, the more likely this asset is to offer higher returns after the highest score is recorded.
Second, time is important. The algorithm has been trained in a fuzzy time frame with an emphasis on identifying favorable conditions that can materialize over several days.
The more time that passes after the VORTECS ™ algorithm recognizes the signs of a historically favorable outlook, the better the asset’s price performance will look on average. The favorable conditions that form around high-scoring tokens generate the largest price increases after 168 hours (one week) since they first appear on the algorithm’s radar.
Doing the math of cryptocurrency trading
A 5 or 6% return on investment over a week may not seem like much, these days of bull markets galore. Don’t be fooled.
Studies show that short-term traders often lose money. A recent article estimated that “97% of all people who persisted for 300 days” in the Brazilian stock futures market fell into this category. Other studies have shown similar results.
Therefore, find an algorithm that can generate average returns consistently positive over precisely measured periods of time is, well, the Holy Grail for cryptocurrency traders.
Is it infallible? Absolutely not. Again, don’t be fooled. The VORTECS ™ algorithm has returned many scores that suggested bullish conditions, yet prices did not increase.
What this table shows is the AVERAGE performance over a specified period of time after an arbitrary score.
But what this table SHOWS is that VORTECS ™ does exactly what it is designed to do. Constantly identifying market conditions for specific crypto assets that have historically been bullish, and modeling employee trust to determine a score that traders can use as part of their decision making.
ROI of Score VORTECS ™ methodology and background
The VORTECS ™ Score is an AI-powered algorithm available exclusively to Cointelegraph Markets Pro members.
The tool is capable of looking for historical patterns of price change, commercial activity and social sentiment around more than 200 digital assets, sounding the alarm whenever the disposition of these metrics begins to resemble those that, in the past, appeared consistently before prices went up.
The higher the VORTECS ™ Score at any given time, the higher the confidence of the model.
The table presents the average price changes across all digital assets that reached the VORTECS ™ Score of 80, 85 and 90 after fixed intervals, from the moment the score was first recorded. The observation period is the entire period of operation of the CT Markets Pro platform, from the beginning of January to the end of November 2021, or almost 11 months.
For this analysis, each asset could only produce one observation per day, that is, if a coin goes from 79 to 81, then back to 79, and then back to 80 once more in a few hours, it will only count its first entry at 80+. .
In this way, We ensured that the analysis did not provide a disproportionate representation of the more volatile VORTECS ™ Score when compared to those times when assets exceeded baseline thresholds and held high scores for longer periods.
The average price movement figures you see in the table are aggregated from hundreds of digital assets that reached the high VORTECS ™ Score over the observed period of nearly 11 months.
They reflect the performance of crypto assets in bull, bear and side markets, both in Bitcoin season and peak season, and for all types of assets, from DEX tokens to layer one platforms and privacy coins.
Get started with the VORTECS ™ algorithm today!
Cointelegraph is a financial information publisher, not an investment advisor. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and graphics are correct at the time of writing or as otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making financial decisions.