Here is how studying tokens’ price history helps patient traders enjoy consistent average gains.

Published at: March 27, 2022

Whether you consider cryptocurrency trading as art, science or a game of skill, one thing is beyond dispute: Those who excel at it are not the traders who maintain the longest series of lucky one-offs but those who establish sustainable trading processes yielding consistent returns.

Ask a sample of seasoned pros if they would prefer to catch one obscure token’s 300%-in-a-day brush with fame or learn a strategy that systematically generates a 3% return on investment. You will be surprised how many of them (likely close to 100% of the sample) prefer modest yet systematic profits.

How does one make their trading processes more systematic? One way is to rely on automated data analytics tools with a proven track record of consistent performance. One such tool is the VORTECS™ Score, an artificial intelligence (AI)-powered algorithm exclusively available to the subscribers of Cointelegraph Markets Pro. Its job is to compare the current combination of trading and social metrics around each crypto asset to past ones, giving traders a heads-up when historical conditions begin to look ripe for a rally.

Here are some numbers from an average week in the March sideways market. To understand what they mean, you only need to wrap your head around two simple notions. First, the higher the token’s VORTECS™ Score, the more favorable its outlook is, historically speaking. Scores of 80 and above are conventionally considered to be strongly bullish. Meanwhile, Scores above 90 indicate the algorithm’s extreme confidence that, in the past, similar patterns consistently showed up ahead of massive rallies.

Second, the algorithm is designed to detect patterns of trading activity and social sentiment that in the past preceded big upsides by 12 to 72 hours. On average, assets tend to perform better after longer times from hitting high Scores.

The data from this week largely supports this observation. As the table shows, forty coins that hit the VORTECS™ Score of 80 added an average of 2.53% of value 48 hours after reaching the threshold and 3.67% after 72 hours. The average gains generated by the assets that hit the Score of 90 are less reliable because they are based on only three observations: nineties occur way less frequently than eighties. Nevertheless, in most weeks, nineties outperform eighties, as was the case this week.

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This week’s average returns are representative of the broader picture of how the VORTECS™ algorithm performs. Over one year between January 2021-2022, crypto assets that reached the Score of 80 delivered an average gain of 2.45% after 72 hours. The 90-hitters yielded 4.46% after 72 hours.

While these numbers may look modest, more than a year’s worth of observations speak to their consistency. This makes the VORTECS™ Score a sound addition to the arsenal of those who wish to make their trading strategies more systematic.

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 charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.

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