Consistency is generally not a hallmark of crypto asset price movements. In a market characterized by volatility, outliers often become the norm, while even macro analysis of large-cap assets like Bitcoin and Ether is often misplaced.
For cryptocurrencies with smaller market caps, finding trading patterns can be even more difficult. But as Cointelegraph Markets Pro’s VORTECS Score ™ continues to absorb the history of nearly 200 digital assets, a careful analysis of some crypto tokens shows that there are patterns – even if they may be invisible to the human eye, the data does not lie.
The data science team at Markets Pro and The TIE examined a number of cryptocurrencies that have regularly achieved a VORTECS ™ score of more than 80 since the quantitative algorithm was launched on January 3, 2021.
A score of 80 generally indicates that the algorithm has a reasonably high confidence that the combination of positive sentiment, price action, trading volume, and volume of tweets that you currently see on the market has historically led to a price increase for that asset. particularly for the next few years. days.
In the chart below, we can see the assets that have reached that score in at least 20 days since launch, including AVAX, EGLD, VGX, MATIC, FTM, LUNA, AXS, AAVE, SAND, and COTI.
The blue bar illustrates the number of days the asset reached at least 80: if the coin rose above 80 and then fell back below, before reaching the score again, only one was recorded per day; all subsequent accesses in the next 24 hours were ignored.
The orange bars represent the number of times the asset gained 3% in value over the next 72 hours, while the gray bars show a 5% gain and the yellow bars indicate a 10% gain.
LUNA boasts the most consistent gains of at least 3% after a VORTECS ™ score of 80, achieving that milestone 92% of the time:
- Gained 3% in value 92% of the time
- Gained 5% in value 84% of the time
- Gained 10% in value 68% of the time
Elrond (EGLD) also has a strong set of scores after a score of 80:
- Gained 3% in value 65% of the time
- Gained 5% in value 61% of the time
- Gained 10% in value 55% of the time
The Sandbox (SAND) stands out for highly consistent minor gains that did not translate into the same kind of 10% more returns:
- Gained 3% in value 86% of the time
- Gained 5% in value 82% of the time
- Gained 10% in value 41% of the time
What is VORTECS? ™
The VORTECS ™ Score is an algorithmic metric derived from the historical analysis of cryptocurrency markets.
For each of the ~ 200 crypto assets supported by Cointelegraph Markets Pro, the algorithm looks for moments in time that resemble the current market landscape – 24/7.
Specifically, look for patterns that have consistently led to significant price changes in the past.
These patterns include a variety of factors: Volume, Outlook, Actual Price, Tweet Volume, Elevation, Confidence, and Sentiment … or VORTECS ™ for short.
The algorithm combines all of this raw data into a VORTECS ™ score, which is designed to identify the overall health of the market for a particular crypto asset. A high score suggests that in the past, conditions similar to what we see now have often led to increases in the price of that asset. The higher the score, the more confident the algorithm is that these scenarios have been consistent.
All-Time VORTECS ™ Scoring Performance
Markets Pro has been tracking the return on investment (ROI) of Bitcoin, a uniformly weighted basket of the top 100 altcoins, and various automated strategies based on VORTECS ™ since the algorithm’s launch on January 3, 2021. A complete methodology is available here.
While Bitcoin was trading just 8% higher than its price on January 3 at the time of this writing, the basket of altcoins had delivered 348% in returns. High-yielding VORTECS ™ strategies have generated huge profits, including several exceeding 1,000%, although the recent market pullback has meant that one strategy (buy with a score of 85, sell with 75) is now lagging behind returns. of Bitcoin.
Time-based strategy performance
Performance of the score-based strategy
Cointelegraph Markets Pro is available exclusively to members monthly at $ 99 per month, or annually with two months free included. It carries a 14-day money-back policy, to ensure it meets the crypto trading and investment research needs of subscribers, and members can cancel at any time.
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. Full terms and conditions.