For those who prefer consistency to luck, this algorithmic indicator has a lot to offer.
Regardless of whether people consider cryptocurrency trading an art, a science, or a game of skill, there is one thing that is beyond dispute: The ones that stand out are not the traders who maintain the longest string of lucky one-off trades, but the ones who establish sustainable trading processes that produce consistent returns.
Ask a sample of seasoned pros if they would 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. One would be surprised how many of them (probably close to 100% of the sample) prefer modest but consistent profits.
How Trading Processes can become more Systematic
One way to make trading processes more systematic is to rely on automated data analysis tools with a proven record of accomplishment 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 past ones, giving traders a head start when historical conditions start to look ripe for a rally.
How to Interpret the Figures Compiled by VORTECS™
To understand what the figures mean, you just have to take into account two simple notions. First, the higher the token’s VORTECS™ score, the more favorable its outlook, historically speaking. Scores of 80 or more are conventionally considered very bullish. On the other hand, scores above 90 indicate the extreme confidence of the algorithm that, in the past, similar patterns appeared systematically before massive increases.
Second, the algorithm detects patterns of trading activity and social sentiment that have preceded big rallies 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 average returns are representative of the larger picture of the performance of the VORTECS™ algorithm. Over a year, between January 2021 and 2022, crypto assets that reached the score of 80 delivered an average gain of 2.45% to the 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.
It is worth remembering that trading specializes in buying and selling assets quickly and with the aim of receiving a large percentage of profits.
Trading generally takes place in the short and medium term. Traders analyze market patterns (technical analysis) and follow news, events, activities, or the elements that give value to the financial asset (fundamental analysis). In this way, they develop strategies with the aim of generating returns in a short period.
By Audy Castaneda
