Let’s be blunt: Being in a bear market sucks profoundly as a crypto trader. Most strategies that work when everything is green lead to losses. Growing the value of a portfolio takes twice as much work for half as much progress. The uncertainty over how long the market will remain down is exhausting. During these times, making use of every available tool that can enhance traders’ decision-making is key to success.
One such tool is the VORTECS
The Score can be creatively used in an infinite number of ways, but one hypothetical strategy based on detecting the strongest historical analogies massively outperformed both Bitcoin (BTC), which has lost some 25% of its value during the first month of 2022, and the aggregate altcoin market, whose losses are comparable. This strategy, called “Buy 90/Sell 70,” yielded a 15% gain between Jan. 1 and Jan. 27.
What does Buy 90/Sell 70 mean?
The most important thing about VORTECS
Trades that inform this strategy occur on a server rather than an actual exchange. There can be dozens of them per day, and the testing portfolio gets rebalanced according to a formula after each trade. Still, the results that these tests generate can provide a compelling picture of the algorithm’s performance.
The way the indicator works is as follows: The higher the VORTECS
Scores of 90 and above are much rarer; normally, there are just a few instances every week. What they indicate is that in the past, the observed setup of trading conditions reliably showed up before dramatic price spikes. The Buy 90/Sell 70 strategy means buying every asset whose VORTECS
How it has gone down in 2022
Throughout January 2022, a total of 18 crypto assets have achieved a VORTECS
The assets that hit the VORTECS
Of course, a strong VORTECS
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 risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.