Regardless of whether cryptocurrency trading is considered an art, a science, or a game of skill, there is one thing that is beyond dispute: Those who stand out are not the traders who maintain the longest string of successful one-off trades, but those who establish sustainable trading processes that produce consistent returns..
Ask a sample of seasoned pros if they’d rather catch a certain token’s brush with fame by 300% in one day or learn a strategy that consistently generates a 3% return on investment. You will be surprised how many of them (probably close to 100% of the sample) prefer modest but consistent profits.
How can one make their trading processes more systematic? One way is rely on automated data analysis tools with a proven track record of consistent performance. One of these tools is the VORTECS™ Score, an artificial intelligence (AI)-powered algorithm available exclusively to Cointelegraph Markets Pro subscribers. Its job is to compare the current mix of trading and social metrics around each crypto asset with the past, giving traders a heads up when historical conditions start to look ripe for a rally.
Here are some numbers from an average market week in March, which was almost flat. To understand what they mean, you just have to take into account two simple notions. First of all, the higher the token’s VORTECS™ score, the more favorable its outlook, historically speaking. Scores of 80 or more are conventionally considered very bullish. For his part, heScores above 90 indicate the extreme confidence of the algorithm that similar patterns consistently appeared before massive rallies in the past..
Second, the algorithm is designed to spot patterns of trading activity and social sentiment that have preceded big spikes in the past between 12 and 72 hours. On average, assets tend to perform better after more time has elapsed since they reached their highest scores.
This week’s data greatly supports this observation. As the table shows, forty coins that achieved the VORTECS™ score of 80 added an average of 2.53% in value 48 hours after reaching the threshold and 3.67% after 72 hours. The average returns generated by assets that scored 90 are less reliable because they are based on only three observations: nineties occur much less frequently than eighties. However, in most weeks, the nineties exceed the eighties, as has happened this week.
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This week’s average returns are representative of the bigger picture of VORTECS™ algorithm performance.Over a year, between January 2021 and 2022, crypto assets that reached the score of 80 delivered an average gain of 2.45% after 72 hours. Those who scored 90 yielded 4.46% after 72 hours.
Although these figures may seem modest, more than a year of observations speak for their consistency.. This makes the VORTECS™ Score a solid addition to the arsenal of those who want to make their trading strategies more systematic.
Cointelegraph is a publisher of financial information, 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 time of writing or where otherwise noted. Live tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
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