If you look at the price movements of crypto assets as a series of isolated events, the picture is confused. Of course, sometimes some traders can win big at one-time events or by spotting a trend inspired by memes.
In the long run, however, most of these “chance” traders tend to lose.
Why? Because they have to pick big winners to cover all the times they miss their goals.
For every Shiba Inu, there were a thousand pieces that were not lunate.
This is why crypto traders who employ processes rather than trying to predict events are more likely to fill their bags in the long run.
They are trading on probabilities rather than expecting Token X to go parabolic next week. They win on cumulative numbers instead of single, sexy looking pieces. If you offered them average weekly returns of over 5% on trades … they would bite your hand.
The table below shows the average returns after the high VORTECS ™ scores generated by the historical analysis of Cointelegraph Markets Pro.
Good things happen to those who wait
There are two unmistakable trends here. First, the higher the VORTECS ™ score, the higher the average yields. In other words, the more convinced the algorithm is that the historical conditions around the coin are bullish, the more likely this asset is to generate larger gains after recording the high score.
Second, time matters. The algorithm was trained over a fuzzy period of time with an emphasis on identifying favorable conditions that can materialize over several days.
The more time elapses after signs of a historically favorable outlook are recognized by the VORTECS ™ algorithm, the better on average the price performance of the asset. Favorable conditions that form around high scoring tokens generate the largest price increases after 168 hours (one week) from their first appearance on the algorithm’s radar.
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A 5% or 6% return on investment over a week may not seem like much in these days of a heavy bull market. Don’t be fooled.
Studies show that short-term traders often lose money. A recent article estimated that “97% of all individuals who persisted for 300 days” in the Brazilian equity futures market fell into this category. Other studies have shown similar results.
So, to find an algorithm that can generate average returns still positive over precisely measured time periods is – well, the holy grail for crypto traders.
Is it foolproof? Absolutely not. Again, make no mistake about it. The VORTECS ™ algorithm generated numerous scores suggesting bullish conditions, yet prices did not rise.
What this table shows is the AVERAGE return over a specific period of time following an arbitrary score.
But what is this table PROVE is that VORTECS ™ does exactly what it is designed to do. It systematically identifies market conditions for specific crypto assets that have been historically bullish and uses confidence modeling to determine a score that traders can use as part of their decision making.
Methodology and history of the KING VORTECS ™ Score
The VORTECS ™ Score is an AI-based algorithm available exclusively to Cointelegraph Markets Pro members.
The tool is trained to search for historical patterns of price change, business activity, and social sentiment around more than 200 digital assets, sounding the alarm whenever the arrangement of these metrics begins to resemble those that , in the past, were displayed systematically before the price increase. .
The higher the VORTECS ™ score at any given time, the greater the confidence of the model.
The table shows the average price changes across all digital assets that achieve VORTECS ™ scores of 80, 85, and 90 after fixed intervals, from when the score was first recorded. The observation period corresponds to the entire operating period of the CT Markets Pro platform, from the beginning of January to the end of November 2021, i.e. almost 11 months.
For this analysis, each asset could only report one observation per day, that is, if a coin went from 79 to 81, then back to 79 and then back to 80 in a few hours, only its first entry at 80+ would count.
This way, we ensured that the analysis did not disproportionately represent instances of more volatile VORTECS ™ scores, as opposed to times when assets exceeded benchmarks and maintained high scores for longer.
The average price movement figures you see in the table are aggregated from hundreds of digital assets achieving high VORTECS ™ scores during the observed period of almost 11 months.
They reflect the performance of crypto assets in bullish, bearish and sideways markets, both during Bitcoin and Altseason season, and for all kinds of assets, from DEX tokens to layer one platforms and privacy coins.
Start using the VORTECS ™ algorithm today!
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 does not represent future results. Figures and graphics are correct at time of writing or as otherwise specified. Strategies tested live are not recommendations. Consult your financial advisor before making any financial decisions.