Before we get into the nitty-gritty of how a simple rule created the insane ROI noted in the headline – during one of the worst cryptocurrency bear markets in recent history – let’s get one thing straight.
You cannot copy this currently.
But anyone with access to Cointelegraph Markets Pro in 2022 could have. This is not just a tried and tested behind the scenes strategy. It’s a real life strategy – although you are about to see historical results.
This is no longer a thought experiment or proof of concept; It is a real way to earn money when speculating with cryptocurrencies.
For our purposes, it’s also a perfect way to illustrate how a simple strategy can work for real traders in real life, even during extreme market reversals.
So, let’s go deeper. What could you do, right now, today, with this algorithm?
What does “Buy at 85, Sell at 80” mean?
This is the basic premise. In collaboration with data firm The Tie, Cointelegraph Markets Pro has developed the VORTECS™ Score, an algorithmic determination of current bullish or bearish trading conditions for a given crypto asset.
The score is based on historical data, and essentially sifts through the entire history of a coin or token looking for conditions that are similar to what you are seeing right now.
Look for a number of similarities and outliers: for example, the volume of trade, recent price developments, social sentiment, and even the volume of tweets about that asset.
If you find similarities, analyze what happened next. Did the asset go up or down? How consistent was that move? How important was the rise or fall?
Combining all of these data points, Markets Pro creates the VORTECS™ Score, an ever-evolving and dynamic assessment of current trading conditions for each supported asset. The higher the score, the more bullish the outlook and the more confident will be the algorithm
Conversely, a much lower score is bearish (with equal confidence). A neutral score of 50 means that the algorithm does not see a significant correlation between current conditions and past price developments.
The Markets Pro platform offers a whole series of strategies to traders.
A “Buy at 85, Sell at 80” strategy means that a trader can buy an asset that crosses the 85 score, which is considered strongly bullish. And then “sell” the asset once it gets below the score of 80.
Of course, this happens on an exchange in real time. Or a trader can simply “paper trade” the asset to test the algorithm.
For example, if Solana’s SOL token crossed 85, and it was the only asset with that high score, the trader could put a percentage of their current wallet into SOL. But if Binance’s BNB token also crossed 85, the trader could allocate another percentage of his portfolio to BNB. Or not. The choice is yours.
Why is it important to know?
It is about evaluating whether the VORTECS™ algorithm is good at its job.
When you see bullish conditions, will you hit the majority of the time? When the result is bullish, do prices tend to increase? Obviously, the answer is yes.
Buy at 85, sell at 80 is just a strategy. There are other strategies that have created a massive return on investment in 2022.
For example, Buy at 90, Sell at 85. This has delivered over +96.89% returns in 2022. Even stronger strategies include:
Buy at 90, sell at 90 | +159.15%
Buy at 85, sell at 75 | +102.65%
In fact, Bitcoin (BTC) has returned -65% since the start of 2022 and Ether (ETH) has done no better, returning -68%, while VORTECS™ based strategies have seen a average of +81.50% in all cases, surpassing BTC and ETH respectively.
And that indicates that VORTECS™ is working correctly. In general, over time, it is showing that the historical trading conditions of digital assets can be a useful indicator of the current health of that asset.
In other words, a high VORTECS™ Score has a proven correlation with price appreciation. Not in all cases, not for all assets… but overall, the 2022 results have been compelling.
Warren Buffett (perhaps paraphrasing Georg Wilhelm Friedrich Hegel) once said that “What we learn from history is that people don’t learn from it.”
(As a cryptocurrency skeptic, you might want to revise your stance.)
That’s what the VORTECS™ Score is all about. Learn from history. And that’s why a real return of 176.31% is important right in the middle of one of the worst cryptocurrency bear markets in history.
It tells us that we are looking at the correct story.
Cointelegraph Markets Pro is available exclusively to members on a monthly basis of $99 USD, or annually with two months free included. It has a 14-day money-back policy, to ensure it meets the trading and investing research needs of subscribers, and members can cancel at any time.
Cointelegraph is a publisher of financial information, not an investment adviser. 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 graphs are correct at time of writing or where otherwise specified. Strategies tested in real time are not recommendations. Consult your financial adviser before making any decisions.
All quoted performances are accurate as of 8:00 am UTC on November 17, 2022.