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Here’s how studying token price history helps patient traders achieve consistent average profits.

Whether you view cryptocurrency trading as an art, a science, or a game of skill, one thing is beyond question: those who excel at it are not the traders who maintain the longest line of lucky one-offs, but those who establish sustainable trading processes, the consistent ones generate returns.

Ask a sample of seasoned professionals if they would prefer an obscure token to graze 300% in a day of glory, or learn a strategy that systematically generates a 3% return on investment. You’d be surprised how many of them (probably almost 100% of the sample) prefer modest but systematic gains.

How do you design your trading processes more systematically? One option is to rely on automated data analysis tools with a proven track record of consistent performance. One such tool is the VORTECS™ Score, an artificial intelligence (AI) based algorithm available exclusively to subscribers of Cointelegraph Markets Pro. Its job is to compare the current combination of trading and social metrics surrounding each crypto asset to historical ones, giving traders a head start when historical conditions appear ripe for a rally.

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Here are some numbers from an average week in the sideways market in March. To understand what they mean, you only need to familiarize yourself with two simple terms. First, the higher the token’s VORTECS™ Score, the more favorable its prospects are historically. Scores of 80 and above are traditionally considered strongly bullish. Meanwhile, readings above 90 indicate the algorithm’s extreme confidence that similar patterns have historically emerged before massive rallies.

Second, the algorithm is designed to identify trading activity patterns and social sentiment that have historically preceded major upside moves by 12 to 72 hours. On average, assets tend to perform better after longer periods of high scores.

This week’s data broadly support that observation. As the table shows, forty coins that achieved the VORTECS™ Score of 80 added an average of 2.53% of value 48 hours after hitting the threshold and 3.67% after 72 hours. The average gains generated by assets that score 90 are less reliable because they are based on just three observations: Nineties occur much less frequently than eighties. Still, most weeks the 90’s outperform the 80’s, as was the case this week.

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This week’s average returns are representative of the broader picture of the performance of the VORTECS™ algorithm. Over a year between January 2021-2022, crypto assets that scored 80 delivered an average gain of 2.45% after 72 hours. The 90-hitter yielded 4.46% after 72 hours.

While these numbers may seem modest, observations spanning more than a year speak to their consistency. This makes the VORTECS™ Score a solid addition to the arsenal of those looking to make their trading strategies more systematic.

Cointelegraph is a financial information publisher, not an investment advisor. We do not offer personalized or individualized investment advice. Cryptocurrencies are volatile investments and involve significant risk, including risk of permanent and total loss. Past performance is not a guide to future results. Illustrations and diagrams are correct at the time of writing or as otherwise stated. Strategies tested live are not recommendations. Consult your financial advisor before making any financial decisions.

https://cointelegraph.com/news/here-is-how-studying-tokens-price-history-helps-patient-traders-enjoy-consistent-average-gains Here’s how studying token price history helps patient traders achieve consistent average profits.

Fry Electronics Team

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