Exactly one year ago, on January 9, 2021, Cointelegraph launched its subscription-based data intelligence service, Markets Pro. On that day, Bitcoin (BTC) was trading at around $ 40,200, and the current price of $ 41,800 marks a year-on-year increase of 4%. An automated testing strategy based on Markets Pro’s key indicator, the VORTECS ™ score, delivered a return on investment of 20.573% over the same period. This is what it means to retailers like you and me.
How can I get my 20,000% per annum?
The short answer is: you can’t. Neither can any other human being. But that doesn’t mean crypto investors can’t vastly improve their altcoin trading game using the same principles that underlie this amazing ROI.
The headline figure comes from live testing of various VORTECS ™ -based business strategies that began on the day of the platform’s launch. Is that how it works.
The VORTECS ™ score is an artificial intelligence-driven trade indicator whose job it is to examine the past performance of each digital asset and identify multi-dimensional combinations of trade and social sentiment metrics that are historically bullish or bearish. For example, consider a hypothetical situation where every time Solana (SOL) sees an additional 150% positive mentions in tweets combined with 20% to 30% in trading volume versus a fixed price, its price increases dramatically. in the next two or three days. .
Upon detecting a historically bullish disposition like this in, say, SOL’s real-time data, the algorithm will assign the asset a strong VORTECS ™ score. The conventional limit for optimism is 80, and the more confident the model is that the outlook is favorable, the higher the score.
To get an idea of the performance of the model, starting from day one, the Markets Pro team tested live a series of hypothetical trading strategies based on “buying” all assets that cross a certain VORTECS ™ score and then “selling” them afterwards. a fixed amount of time.
These transactions were executed on a spreadsheet rather than an exchange (hence no fees to eat up profits), 24/7, and involved complex algorithmic rebalancing to ensure that at any given time all assets that achieve a benchmark score are held equally in the portfolio. In short, following these strategies was something that only a computer could do.
The winning strategy, “Buy 80, sell 24 hours”, involved buying all the assets that reached the score of 80 and selling them exactly 24 hours later. This algorithm yielded a hypothetical 20.573% profit for one year. Even among other humanly impossible strategies, it is an outlier: the second best, “Buy 80, Sell 12 hours”, generated 13.137%, and number three, “Buy 80, Sell 48 hours”, returned “mere” 5,747%.
To the earth
What these insane numbers show is that the returns generated by high VORTECS ™ assets worsened over time. But what good is it if real-life traders couldn’t replicate the capitalization strategy? A more practical way of looking at the performance of the VORTECS ™ model is through average returns after high scores. No fancy rebalancing, just a simple average price change that all high scoring tokens demonstrated X hours after reaching the Y score. Here are the numbers:
These look a lot more modest, don’t they? If you think about it, though, the picture these averages show is no less powerful than hypothetical mind-blowing annual returns. The table demonstrates strong positive price dynamics after high scores, averaging all asset types and across all market situations that occurred throughout the year.
The trend is unmistakable: Tokens that reach VORTECS ™ scores of 80, 85, and 90 tend to appreciate within 168 hours. Higher scores are associated with higher gains – the algorithm’s greater confidence in the optimism of observed conditions, in fact, comes with higher returns (although higher scores are also rarer). Another important factor is time: the longer the wait after reaching a benchmark threshold, the higher the average ROI.
GET PRO MARKETS RIGHT NOW
In this sense, instead of trying to follow the complex algorithmic strategy of “Buy 80, Sell 24 hours” (which is, again, a futile exercise), real-life traders could maximize their fortunes by buying with higher Scores and keeping for longer. .
A separate internal investigation sequence from Markets Pro looked at whether some coins are more likely than others to exhibit historically bullish trading conditions before dramatic price increases. This turned out to be the case, with tokens like AXS, MATIC, AAVE, and LUNA leading the pack in terms of the most reliable positive price dynamics after historically favorable setups. Overall, most of the frequent VORTECS ™ high-performing companies generated strong positive returns.
After a full year in operation, these disparate pieces of quantitative evidence – mind-boggling ROIs from algorithmic live testing strategies, solid average gains on VORTECS ™ assets, and constant average coin returns after high scores. – present a compelling Argument for the utility of the “historical rhymes” approach to crypto trading.
Obviously, a favorable historical outlook, captured by a strong VORTECS ™ score, is never a guarantee of an imminent rebound. However, an additional pair of algorithmic eyes capable of viewing and comparing billions of historical data points to alert you to bullish setups for digital assets. before they materialize It can be an incredibly powerful addition to any trader’s toolkit.
Cointelegraph is a financial information publisher, 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 the time of writing or as otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making financial decisions.