Just a year ago, on January 9, 2021, Cointelegraph launched a subscription-based data intelligence service. Market Professional Edition. That day, Bitcoin (BitcoinThe transaction price of) is approximately US$40,200, and today’s price is US$41,800, an increase of 4% year-on-year. The automated testing strategy based on Markets Pro’s key indicator VORTECS™ Score produced a return on investment of 20,573% in the same period. What does this mean for retail traders like you and me.
How can I get my 20,000% a year?
The short answer is-you can’t. Neither can anyone else. But this doesn’t mean that cryptocurrency investors cannot massively enhance their altcoin trading game by using the same principles as this jaw-dropping return on investment.
The number in the title comes from the real-time testing of various VORTECS™-based trading strategies that began on the day the platform was released. Here is how it works.
VORTECS™ Score is an artificial intelligence-driven trading indicator. Its job is to screen the past performance of each digital asset and identify historically bullish or bearish trading and a multi-dimensional combination of social sentiment indicators. For example, consider a hypothetical situation where each time Solana (SOL) sees an additional 150% positive tweet mentions plus 20% to 30% of the transaction volume compared to a fixed price, the price will be in the next two to three Soaring sharply in the day.
For example, after a historical bullish arrangement like this is detected in SOL’s real-time data, the algorithm will assign a strong VORTECS™ score to the asset. The usual threshold for bullishness is 80. The greater the model’s confidence in the prospects, the higher the score.
In order to understand the performance of the model, from day one, the Markets Pro team has conducted field tests on many hypothetical trading strategies based on “buying” all assets that exceed a certain VORTECS™ score and then “selling” them. fixed time.
These transactions are executed in a spreadsheet, not in an exchange (so there are no fees to offset the gains), 24/7, and involve complex Algorithm rebalancing Ensure that at any given moment, all assets that reach the reference score are held in equal shares in the portfolio. In short, following these strategies is something that only computers can do.
The winning strategy “Buy 80, sell for 24 hours” requires buying all assets with a score of 80 and selling them exactly 24 hours later. The algorithm generated a hypothetical return of 20,573% in one year. Even in other artificially impossible strategies, it is an outlier: the second-best strategy “buy 80, sell for 12 hours” generates 13,137%, while the third-ranked “buy 80, sell for 48 hours” “Produced “only” 5,747% %.
These crazy numbers show that the returns generated by high VORTECS™ assets compound well over time. But what is the use if real-life traders cannot replicate compound interest strategies? A more practical way to view the performance of VORTECS™ models is the average return after passing high scores. There is no fancy rebalancing, just a simple average price change, and all high-scoring tokens show up X hours after reaching the Y score. The following are the numbers:
These look more humble, don’t they? However, if you think about it, the picture painted by these averages is no less than the exciting hypothetical annual return.The table shows Strong positive price dynamics after high scores, Average all types of assets and all market conditions that occurred throughout the year.
The trend is unmistakable: tokens with VORTECS™ scores of 80, 85, and 90 tend to appreciate in the next 168 hours. Higher scores are associated with greater returns: the algorithm is more bullish confidence in the observed conditions, in fact, with greater returns (although higher scores are rare). Another important factor is time: the longer you wait after reaching the reference threshold, the greater the average ROI.
In this sense, instead of trying to follow the complex algorithmic strategy of “buy 80, sell for 24 hours” (which is another futile exercise), real-life traders can buy and combine with higher scores. Hold for longer to maximize their wealth.
Predictability of change
A separate internal stream Market Professional Edition The research looks at whether certain tokens are more likely to exhibit historically bullish trading conditions than others before the price rises sharply. It turns out that it is true, tokens like AXS, Matic, AAVE and Luna Leading in these areas The most reliable positive price dynamics Follow historically favorable settings. Overall, most frequent high-VORTECS™ performers provide strong positive returns.
After a whole year of operation, these different quantitative evidences—the puzzling return on investment of the algorithm’s real-time testing strategy, the reasonable average return of high VORTECS™ assets, and the stable average return of a single token after high scores—show A compelling example of the utility of the “historical rhythm” approach to crypto transactions.
Obviously, the favorable historical outlook captured by the strong VORTECS™ score can never guarantee an upcoming rebound.However, an extra pair of algorithmic eyes can view and compare billions of historical data points to remind you of the bullish setting of digital assets Before they are realized Can be a very powerful addition to any trader’s toolkit.
Cointelegraph is a publisher of financial information, not an investment advisor. We do not provide personalized or personalized investment advice. Cryptocurrency is an unstable investment and carries significant risks, including the risk of permanent loss and total loss. Past performance does not predict future results. The figures and diagrams are correct at the time of writing or otherwise specified. The strategy of real-time testing is not a recommendation. Before making a financial decision, please consult your financial advisor.