Before we get into the nitty gritty of how one simple rule created the kind of insane return on investment noted in the headline, let’s be clear on one thing.
You can't copy this.
Actually, no human can. Even a trading bot couldn’t replicate this particular strategy in real life, because it’s a thought experiment, a proof of concept, rather than an actual way to make money in crypto trading. The exchange fees alone would kill this particular strategy for most traders.
But that doesn’t mean it’s useless — in fact, it’s the perfect way to illustrate how a simple strategy can work for real traders in real life.
So let’s dig in. What could you do, right now, today, with this algorithm?
What does Buy 80, Sell 12 hours mean?
Here’s the basic premise. In partnership with data firm 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 score is based on historical data, and it essentially sifts through the whole history of a coin or token looking for conditions that are similar to those it observes right now.
It’s looking for a variety of similarities and outliers — for instance, 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. Did the asset go up or down? How consistent was that movement? How significant was the rise or fall?
Combining all of these data points, it creates the VORTECS™ Score, a dynamic and constantly evolving evaluation of the current trading conditions for each supported asset. The higher the score, the more bullish the outlook — and the more confident the algorithm is. Conversely, a very low score is bearish (and equally confident). A neutral score of 50 means the algorithm sees no significant correlation between current conditions and past pric...