It might seem that the volatility of digital asset prices and the lightning speed of cryptocurrency markets means that those who trade as fast as they can get the biggest rewards.
In some cases, this is true. For example, when a token listing announcement is published on Coinbase or Binance for the first time and the asset price line becomes vertical.
But in many cases, a turtle is better than a hare.
This principle obviously works when it comes to traders who use quantitative patterning tools to improve their decision making. An example is the VORTECS ore Score, which is an algorithmic comparison of historical and current market patterns and social activity around a currency.
Although the VORTECS algorithm is trained to detect historically optimistic conditions around cryptocurrencies, price increases rarely follow immediate price increases. In fact, the highest returns consistently come in the next few days after the best results appear. What does this say about the nature of the cryptocurrency market?
The early bird catches the worm (but waits to eat it)
Available exclusively to Cointelegraph Markets Pro subscribers, the VORTECS ore Score is an AI driven index that searches for historical similarities across a multidimensional set of variables. These include changes in the price of a cryptoasset, trading volume, social sentiment, and tweet volume.
The higher the VORTECS score, the more confident the model is that the observed combination of key figures around the token is similar to previous conditions that predicted significant price increases. Dots above 80 are certainly bullish, while a rare sight of more than 90 degrees indicates that the asset’s outlook is overwhelmingly favorable based on its historical record in price action.
The timing is deliberately unclear, however, as the model was designed to detect conditions 12-72 hours earlier than altitude. In fact, while the algorithm is designed to signal bullish conditions as early as possible, it consistently delivers the best results for cryptocurrency traders over a period of days rather than hours.
Historical data show, on average, that assets that score high on the VORTECS scale generate a stable small return as early as six hours after reaching 80, 85 and 90 points.
As such, cryptocurrency investors who rely on Markets Pro data to improve their trading strategies tend to make early profits. However, the same data suggests that it often makes sense to maintain stability rather than taking initial profits.
HODLE, even for a day or two?
The table below shows the average return after a crypto asset crossed the 80, 85 or 90 mark during the week. Each asset can only generate one note per day, i.e. if the coin rises from 79 to 81, then back to 79, and then back to 80 after a few hours, the first entry will only count to 80+.
As you can see from the table, the more time elapses after an asset crosses the 80, 85 or 90 VORTECS ™ threshold, the more likely it is to generate more profit. While these statistics only reflect price movements from a week ago, this pattern has been observed very consistently throughout the history of Markets Pro, which dates back to early 2021.
In fact, 48 hours is not the limit. Some Markets Pro subscribers report consistently high payouts for Super Points over 90 holding these coins for an entire week or 168 hours.
These observations indicate that the cryptocurrency market may not be as chaotic and bizarre as many think. While many of the moves are clearly driven by waves of research and development and hype, the broader digital asset market exhibits particular regularity and recurring patterns of trading and social activity that can take days or weeks to form before asset prices move.
The VORTECS ™ result from Cointelegraph Markets Pro is a way to identify the conditions that lead to these characteristics – as early as possible. The individual trader must decide when to make a profit.