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 is advertised on Coinbase or Binance for the first time, the asset price line becomes vertical.
But in many cases, a turtle is better than a hare.
Of course, this principle works for traders who use quantitative patterning tools to improve 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 has been trained to detect historically optimistic conditions around cryptocurrencies, high scores rarely immediately follow 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 cryptocurrency prices, trading volume, public sentiment, and tweet volume.
The higher the VORTECS score, the more confident the model is that the observed set of metrics around the token is similar to previous conditions that predicted a significant price increase. Dots above 80 are definitely bullish, while a rare sight above 90 degrees indicates that the outlook for the asset is significantly favorable based on the historical history of price action.
However, the timing is deliberately unclear as the model is designed to determine conditions 12-72 hours before 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 shows, on average, that assets with high VORTECS scores generate a stable small return as early as six hours after earning 80, 85 and 90 points.
As such, cryptocurrency investors who rely on Markets Pro data to improve their trading strategies often tend to profit early. However, the same data show that it often makes sense to maintain stability rather than giving up the initial benefit.
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, that is, if the coin grows from 79 to 81, then back to 79 and again to 80 after a few hours, only the first record will be considered 80+.
As you can see from the table, the more time it takes for an asset to overcome the threshold value of 80, 85 or 90 VORTECS ersk, the more likely it is to get more profit. While these statistics reflect price movement only a week ago, this pattern has been consistently observed throughout the history of Markets Pro, which dates back to early 2021.
In fact, 48 hours is not the limit. For Super Points over 90, some Markets Pro subscribers report consistently high payouts by 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 certain patterns 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 soon as possible. The individual trader must decide when to make a profit.