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Here is how studying tokens’ price history helps patient traders enjoy consistent average gains.

March 27, 2022
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Here is how studying tokens’ price history helps patient traders enjoy consistent average gains.
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Whether you consider cryptocurrency trade art, science, or a game, one thing is certain: Those who are successful at it are not those who have the longest run of lucky one offs, but those who develop sustainable trading strategies that produce consistent returns.

Ask a sample of seasoned pros if they would prefer to catch one obscure token’s 300%-in-a-day brush with fame or learn a strategy that systematically generates a 3% return on investment. It will surprise you how many of them prefer modest but systematic profits (possibly close to 100%).

How can you make your trading more organized? Automated data analytics tools have a proven track record of consistently performing. This is one way. One such tool is the VORTECS™ Score, an artificial intelligence (AI)-powered algorithm exclusively available to the subscribers of Cointelegraph Markets Pro. It compares the current trading and social metrics for each crypto asset with past ones to give traders an early warning if historical conditions are ripe for a rally.

Here are some numbers based on an average week in March’s sideways market. Two simple concepts will help you understand what they mean. First, the higher the token’s VORTECS™ Score, the more favorable its outlook is, historically speaking. Scores higher than 80 are generally considered to be bullish. Meanwhile, Scores above 90 indicate the algorithm’s extreme confidence that, in the past, similar patterns consistently showed up ahead of massive rallies.

Second, the algorithm can detect patterns in trading activity or social sentiment that may have preceded big upsides. This is usually between 12 to 72 hours. Assets perform better when they are given longer periods to reach high Scores.

This observation is supported by data from this week. As the table shows, forty coins that hit the VORTECS™ Score of 80 added an average of 2.53% of value 48 hours after reaching the threshold and 3.67% after 72 hours. The average gains from assets that have reached the Score of 90 can be less reliable since they are based on three observations. Nineties are much more frequent than eighties. However, nineties outperforms eighties in most weeks. As was the case this past week.

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This week’s average returns are representative of the broader picture of how the VORTECS™ algorithm performs. In the one-year period January 2021-2022, crypto assets reaching the Score of 80 saw an average gain of 2.45% in 72 hours. After 72 hours, the 90-hitters earned 4.46%

While these numbers may look modest, more than a year’s worth of observations speak to their consistency. This makes the VORTECS™ Score a sound addition to the arsenal of those who wish to make their trading strategies more systematic.

Cointelegraph is a publisher and distributor of financial information, but not an investment advisor. We do not offer personalized or individualized investment advice. Cryptocurrencies can be volatile investments that carry high risk, including the possibility of total and permanent loss. Past performance is not indicative for future results. Charts and figures are correct at the time of writing unless otherwise noted. Strategies that have been live-tested are not considered recommendations. Before making any financial decisions, consult your financial adviser.

Source: Coin Telegraph

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