You can’t predict the future, but you can learn from the past.
And some crypto tokens are much (much) more predictable than others when you analyze their historical trading patterns.
In fact, five cryptocurrencies in particular have shown the kind of predictability of trading that could give astute crypto traders a huge advantage in the markets.
These five tokens all proved one thing in common:
- After seeing strong bullish conditions, they averaged an increase in value measured at 24, 48 and 72 hours
- After experiencing extreme bullish conditions, they also increased on average after 24, 48 and 72 hours
- The minimum average gain over 72 hours after an extreme flag was a staggering 10%
While this is a measure of past trading activity and (of course) not a promise of future performance, it is noteworthy that these tokens, led by Avalanche (AVAX), exhibit behaviors that, on average, result in large profits, even like others Tokens – including AAVE and Curve (CRV) – tend to decline in value * over similar time periods, and other tokens have little correlation at all with historical trading conditions.
Background for determining predictability
If you’ve followed Cointelegraph at all in the past year, you’ve probably read about its proprietary data intelligence platform, Markets Pro, and its quantitative trading indicator called VORTECS ™ Score.
In purely hypothetical, automated tests, the metric generates an overwhelming ROI that can reach tens of thousands of percent over several months.
However, when it comes to setting historical precedent as a regular investor, knowing the individual habits of each crypto asset is more helpful than marveling at the aggregated data. This allows traders to determine which assets are more likely to follow familiar paths on the way to massive returns.
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The idea behind the VORTECS ™ Score is to offer traders a bird’s eye view of multidimensional patterns in the past performance data of crypto assets. The key principle underlying the usefulness of the score is that individual tokens often behave in noticeably similar ways when it comes to trading metrics and social sentiment. Days before their prices skyrocket (or fill up). If these regularities are recognized at an early stage, they can influence trading decisions, even if they by no means predict price movements.
Average historical profits
The table contains twenty coins with the most VORTECS ™ scores over 80 or 90, counted since the platform was launched.
High values indicate the algorithm’s confidence that the coin’s current outlook is historically bullish. A score of 90, while quite rare, expresses the algorithm’s confidence that prices have typically moved higher and more targeted if similar trading conditions have occurred in the past.
The bars represent average profits after certain times after reaching the high score. For example, the green bar, which is marked as 72/90 in the legend, represents the average profits that the asset achieved 72 hours after reaching the score of 90; the orange bar shows the average return 48 hours after reaching the VORTECS ™ score of 80.
Avalanche (AVAX) is perhaps the most obvious and consistent trade for crypto investors using historical analysis as part of their research. High scores not only correlate directly with the price increase, but the profits have perfectly underpinned the thesis of the algorithm.
Score 80, sale after 24 hours: Average profit 3%
Score 80, sale after 48 hours: Average profit 6%
Score 80, sale after 72 hours: Average profit 9%
Score 90, sale after 24 hours: Average profit 12%
Score 90, sale after 48 hours: Average profit 16%
Score 90, sale after 72 hours: Average profit 28%
Some others are very consistent as well, with bars sitting close together.
Axie Infinity (AXS) is a good example: 4% at 24/80, 7% at 48/80, 9% at 72/80.
Others had modest returns after hitting 80 but did exceptionally well after hitting 90:
For example, Narrator (TRB) with average returns of 5% after 72 hours after reaching 80 and 17% after 72 hours after reaching 90.
Some bars even show below zero and mark the tokens that tend to lose value after high VORTECS ™ scores – but these are numerically far inferior.
The majority of crypto assets that exceed the VORTECS ™ Score of 80 will see a constant increase in value over the next 24 to 72 hours, and often over a longer period of time.
The chart suggests that traders can be more confident when the VORTECS ™ Score is lit. AXS, MATIC, AVAX, LUNA and TRB while you are more cautious with AAVE or CRV.
The Markets Pro team constantly tracks the performance of individual assets as well as the score itself. A detailed breakdown of the relevant data points is published in the weekly VORTECS ™ report every weekend to help subscribers get the most out of their membership.
Cointelegraph Markets Pro is exclusive to members on a monthly basis for $ 99 per month or annually with two free months included. It has a 14 day money back policy to ensure it meets the crypto trading and investment research needs of subscribers, and members can cancel at any time.
Cointelegraph is a financial information publisher, not an investment advisor. We do not offer any personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent loss and total loss. Past performance is not an indication of future results. Illustrations and diagrams are correct at the time of compilation or as otherwise stated. Live-tested strategies are not recommendations. Consult your financial advisor before making any financial decisions.