crypto strategy

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

Before we get into the nitty-gritty of how one simple rule created the kind of insane ROI noted in the headline – during one of the worst Crypto Winters in recent history – let’s be clear on one thing. .

You cannot copy this now.

But anyone with access to Cointelegraph Markets Pro in 2022 could have it. It’s not just a backtested strategy. It’s a real strategy, even if you’re about to see historic results.

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

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

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

What does “Buy 85, Sell 80” mean?

Here is the basic principle. In partnership with data firm The Tie, Cointelegraph Markets Pro has developed the VORTECS™ score, an algorithmic determination of the degree to which current trading conditions have risen or fallen for a given crypto asset.

The score is based on historical data, and it essentially sifts through the entire history of a coin or token looking for conditions similar to what it is currently observing.

It looks for a variety of similarities and outliers – for example, trading volume, recent price action, social sentiment, and even the volume of tweets about that asset.

If it finds similarities, it looks at what happened next. Has the asset increased or decreased? What was the coherence of this movement? How big was the rise or fall?

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

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

The Markets Pro platform offers a range of strategies for traders.

A “Buy 85, Sell 80” strategy means that a trader can buy an asset that exceeds the score of 85, which is considered strongly bullish. And then “sell” the asset once it drops below the score of 80.

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

For example, if Solana’s SOL crossed 85 and was the only asset with this high score, the trader could place a percentage of their current portfolio in SOL. But if Binance’s BNB also crosses 85, the trader could allocate another percentage of their portfolio to BNB. Or not. The choice is theirs.

So why is it valuable to know?

This is to assess whether the VORTECS™ algorithm is doing its job well.

When he sees bullish conditions, is he right most of the time? When the score increases, do the prices generally increase? Obviously, the answer is yes.

The Buy 85, Sell 80 is just a strategy. There are other strategies that have created massive ROI in 2022.

For example, buy 90, sell 85. This one is sitting on gains of +96.89% in 2022. 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) did no better with returns of -68% while VORTECS™-based strategies averaged +81.50% across the board, beating the pants of BTC and ETH respectively.

And this signals that VORTECS™ is working properly. This proves – generally, over time – that the historical trading conditions of digital assets can be a useful indicator of the current health of that asset.

In other words, a high VORTECS™ score has a proven correlation with price appreciation. Not in all cases, not for all assets… but in general, the 2022 results were compelling.

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

(As a crypto-skeptic, he might want to reconsider his position.)

This is the purpose of the VORTECS™ score. Learn from history. And that’s why an actual return of 176.31% right in the middle of one of the worst Crypto Winters in market history matters.

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

Cointelegraph Markets Pro is reserved exclusively for members on a monthly basis at $99 per month, or annually with two free months included. It features a 14-day refund policy, to ensure it meets subscribers’ crypto trading and investment research needs, and members can cancel at any time.

Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risks, including the risk of permanent and total loss. Past performance does not represent future results. Figures and graphs are correct at the time of writing or as otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making any financial decisions.

All ROIs quoted are accurate as of 8:00 UTC November 17, 2022