Why HODL for 48 hours? Because your altcoin wallet will thank you

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It might seem that the volatility of digital asset prices and the lightning speed with which the crypto markets move would mean that those who act the fastest get the biggest rewards.

And in some cases, this is true – for example, when an announcement of a token’s listing on Coinbase or Binance first goes public and the asset’s price line becomes anything but vertical.

But in many cases, the tortoise beats the hare.

This principle is clearly at work when it comes to traders using quantum style tools to improve their decision making. One example is the VORTECS ™ score, an algorithmic comparison between historical and current market models and social activity around a coin.

While the VORTECS ™ algorithm is trained to detect historically bullish conditions around crypto assets, high scores are rarely followed by a price spike immediately. In fact, the highest returns consistently arrive over the next few days after the highest scores appear. What does it reveal about the nature of the crypto market?

The early bird catches the worm (but waits to eat it)

Exclusively available to Cointelegraph Markets Pro subscribers, the VORTECS ™ score is an artificial intelligence-based indicator that looks for historical similarities across a multidimensional set of variables. These include changes in the price of a crypto asset, trading volume, social sentiment, and volume of tweets, among others.

The higher the VORTECS ™ score, the more convinced the model is that the observed combination of key metrics around the token resembles past conditions that predicted significant price increases. Scores above 80 are viewed as confidently bullish, while a rarer view of a score of 90+ suggests that the outlook for the asset is overwhelmingly favorable, judging by its all-time high for action on. the costs.

The timing, however, is intentionally fuzzy as the model is designed to detect conditions that previously preceded the 12- to 72-hour rallies. In fact, while the algorithm is designed to signal bullish conditions as early as possible, it consistently delivers the best results for crypto traders within days rather than hours.

Historical data shows that, on average, assets that score high on the VORTECS ™ score provide consistent or even low returns as early as six hours after reaching scores of 80, 85 and 90.

Thus, crypto investors who rely on data from Markets Pro to refine their trading strategies are often tempted to lock in their profits early. The same data, however, suggests that it often makes sense to stay stable rather than grabbing initial gains.

HODL, if only for a day or two?

The table below shows the average returns after a crypto asset scores 80, 85, or 90 over a week. Each asset could only report one sighting per day, that is, if a coin went from 79 to 81, then back to 79 and then back to 80 in a matter of hours, only its first entry to 80+ would count.

As the table shows, the more time elapses after assets cross the 80, 85 or 90 VORTECS ™ Score threshold, the more likely they are to generate higher returns. While these statistics only reflect the movement of prices over a single week, the trend is actually seen very consistently throughout the history of Markets Pro dating back to early 2021.

In fact, 48 hours is not the limit. When it comes to ultra-high scores above 90, some Markets Pro subscribers report generating consistently large gains by holding these coins for a full week, or 168 hours.

These observations suggest that the crypto market may not be as chaotic and fanciful as many believe. While many moves are clearly driven by waves of FUD and hype, the larger digital asset market exhibits identifiable regularities and recurring patterns of business and social activity that can take days and weeks to complete. accumulate before changing asset prices.

The Cointelegraph Markets Pro VORTECS ™ Score is simply a way to identify the conditions that lead to these moves, as early as possible. It is up to the individual trader to decide when to take the profits.

Cointelegraph Markets Pro is available exclusively to members on a monthly basis at $ 99 per month, or annually with two free months included. It has a 14-day refund policy, to ensure it meets subscribers’ crypto trading and investment research needs, and members can cancel at any time.

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.