How a Single Strategy Crypto Algorithm Gained 176.31% While Bitcoin Dropped 65% in 2022

How a Single Strategy Crypto Algorithm Gained 176.31% While Bitcoin Dropped 65% in 2022

Before we get into the details of how one simple rule created the headline’s insane return on investment – during one of the worst crypto winters in recent history – let’s get one thing clear.

You cannot copy it now.

But anyone with access to Cointelegraph Markets Pro in 2022 can have access. It’s not just a proven strategy. This is a real strategy, although you will soon see historical results.

This is no longer a thought experiment or proof of concept; this is a real way to make money on crypto trading.

For our purposes, it is also a great way to illustrate how a simple strategy can work for real traders in real life – even during extreme market pullbacks.

So let’s go deeper. What could you do right now, today, with this algorithm?

What does “Buy 85, sell 80” mean?

Here is the basic premise. In partnership with data company The Tie, Cointelegraph Markets Pro has developed the VORTECS™ score, an algorithmic determination of how bullish or bearish current trading conditions are for a given crypto asset.

The valuation is based on historical data and essentially sifts through the entire history of the coin or token looking for conditions similar to what it is seeing right now.

It looks for many similarities and differences – for example, trading volume, recent price action, social sentiment, and even the number of tweets about this asset.

If he finds a similarity, he looks to see what happened next. Has the asset risen or fallen? How consistent was this movement? How significant was the rise or fall?

By combining all these data points, Markets Pro creates a VORTECS™ score, a dynamic and ever-changing estimate of the current trading conditions for each supported asset. The higher the score, the more optimistic the forecast and the more reliable the algorithm.

Conversely, a very low valuation is bearish (with the same confidence). A neutral score of 50 means that the algorithm sees no significant correlation between current conditions and past price action.

The Markets Pro platform offers traders a range of strategies.

The strategy “Buy 85, sell 80” means that a trader can buy an asset that exceeds 85 points, which is considered highly bullish. And then “sell” the asset as soon as it falls below 80 points.

Of course, this happens live on the stock exchange. Or a trader can simply “paper trade” the asset to test the algorithm.

For example, if Solana’s SOL broke through 85 and became the only asset with such a high valuation, a trader could place a percentage of their current portfolio in SOL. But if Binance’s BNB also crosses 85, the trader will be able to allocate another percentage of their portfolio to BNB. Or not. The choice is theirs.

So why is this important to know?

The point here is to evaluate whether the VORTECS™ algorithm is doing its job well.

When he sees bullish conditions, is he more likely to be right than wrong? When the valuation goes up, do prices usually go up? Obviously yes.

Buy 85, sell 80 is just one of the strategies. There are other strategies that have delivered huge returns on investment in 2022.

For example, “Buy 90, sell 85”. In 2022, this option will grow by +96.89%. Even stronger strategies include:

Buy 90, Sell 90 | +159.15%

Buy 85, Sell 75 | +102.65%

In fact, Bitcoin (BTC) has returned -65% since the start of 2022 and Ether (ETH) has fared no better with a -68% return, while VORTECS™ based strategies average +81.50% across all directions, outperforming BTC and ETH. respectively.

And this indicates that VORTECS™ is working correctly. Overall, over time, this proves that the historical trading conditions of a digital asset can be a useful indicator of the current state of that asset.

In other words, a high VORTECS™ score has a proven correlation with price increases. Not in all cases, not for every asset… but in general, the results of 2022 are convincing.

Warren Buffett (perhaps paraphrasing Georg Wilhelm Friedrich Hegel) once said, “We learn from history what people don’t learn from history.”

(As a cryptoskeptic, he may want to reconsider his position.)

That’s what the VORTECS™ Score is. We learn from history. And that is why a real profit of 176.31% is important right in the midst of one of the worst crypto winters in the history of the market.

This tells us that we are looking at the correct story.

Cointelegraph Markets Pro is available exclusively to members on a monthly basis at $99/month or annually including two free months. It has a 14-day money-back policy to ensure it meets subscribers’ cryptocurrency trading and investing needs, and members can cancel their subscription at any time.

Cointelegraph is a publisher of financial information, not an investment advisor. We do not provide personalized or customized investment advice. Cryptocurrencies are volatile investments and come with significant risk, including the risk of irreversible and complete losses. Past performance is not indicative of future results. Figures and diagrams are correct at the time of writing or otherwise indicated. Live tested strategies are not recommendations. Consult with your financial advisor before making financial decisions.

All ROIs shown are accurate as of 08:00 UTC November 17, 2022.