Just a year ago, on January 9, 2021, Cointelegraph launched a subscription-based data intelligence service, Market Pro. On the day, Bitcoin (bitcoin) was trading at around $40,200, compared to $41,800 today, a 4% increase year-over-year. An automated testing strategy based on Markets Pro’s key metric VOLTECS™ score yielded a 20,573% ROI over the same period. What this means for retail traders like you and me.
How can I get 20,000% per year?
The short answer is – you can’t. Neither can any other human being. But that doesn’t mean cryptocurrency investors can’t massively step up their altcoin trading game by using the same principles as this jaw-dropping ROI.
The numbers in the title come from live testing of various VOLTECS™-based trading strategies, which began on the day the platform was launched. Here’s how it works.
The VOLTECS™ Score is an artificial intelligence-driven trading indicator that works by sifting through the past performance of each digital asset and identifying a multidimensional combination of historical bullish or bearish trading and social sentiment indicators. For example, consider a hypothetical situation where every time Solana (SOL) sees an additional 150% of positive tweet mentions, plus 20% to 30% of volume relative to a fixed price, its price is priced over the next two to three Soared sharply during the day.
After detecting a historical bullish arrangement like this in live data such as SOL, the algorithm will assign a strong VOLTECS™ score to the asset. The traditional cutoff for bullishness is 80, and the more confident the model is, the higher the score.
To see how the model performed, from day one, the Markets Pro team field tested a number of hypothetical trading strategies based on “buying” all assets above a certain VORTECS™ score and then “selling” them for a fixed amount of time thereafter.
These trades are executed in spreadsheets rather than exchanges (so no fees are charged to consume earnings), 24/7, and involve complexities Algorithm Rebalance Make sure that at any given moment, all assets that achieve the reference score are held in equal shares in the portfolio. In short, following these strategies is something only a computer can do.
The winning strategy “buy 80, sell 24 hours” requires buying all assets that reach 80 points and selling after 24 hours. The algorithm produced a hypothetical gain of 20,573% in one year. Even among other artificially impossible strategies, it’s an outlier: the second-best strategy “Buy 80, sell 12 hours” yielded 13,137%, and the third-best strategy “Buy 80, sell 48 hours” yielded “only” 5,747 percent.
These crazy numbers show that high VORTECS™ assets generate very good returns over time. But if real-life traders can’t replicate the compounding strategy, what’s the use? A more practical way to view the performance of the VOLTECS™ model is through the average return after a high score. No fancy rebalancing, just a simple average price change that all high-scoring tokens exhibit X hours after reaching a Y score. Here are the numbers:
These look more humble, don’t they? However, if you think about it, these averages paint a picture no less than exciting hypothetical annual returns.Demonstration of the table Strong positive price dynamics after high score, averaged across all types of assets and all market conditions that occurred throughout the year.
The trend is unmistakable: tokens that achieve VORTECS™ scores of 80, 85 and 90 tend to appreciate in value over the next 168 hours. Higher scores correlate with larger gains: the algorithm’s greater confidence in the observed conditional bullishness does lead to higher returns (although higher scores are also less common). Another important factor is time: the longer the wait time after reaching the reference threshold, the larger the average ROI.
In this sense, rather than trying to follow a complex “buy 80, sell 24” algorithmic strategy (again a futile exercise), real-life traders can buy and sell with higher scores Hold for longer to maximize their wealth.
predictability of change
separate inner stream Market Pro The study looked at whether certain coins were more likely than others to exhibit historically bullish trading conditions ahead of price surges. It turns out that for a token like AXS, MATIC, AAVE and Luna leading in terms of Most reliable positive price dynamics Follow historically favorable settings. Overall, most frequent high VOLTECS™ performers delivered strong positive returns.
After a full year of operation, these various quantitative evidences—the puzzling ROI of algorithmic real-time testing strategies, reasonable average returns on high VORTECS™ assets, and stable average returns on individual tokens after high scores—showed A compelling case for crypto transactions using the “Rhythm of History” approach.
Clearly, the favorable historical outlook captured by a strong VOLTECS™ score is by no means a guarantee of an imminent rebound.However, an extra pair of algorithmic eyes able to see through and compare billions of historical data points to alert you to the bullish setup of the digital asset before they materialize Can be a powerful addition to any trader’s toolkit.
Cointelegraph is a publisher of financial information, not an investment advisor. We do not provide personalized or personalized investment advice. Cryptocurrencies are volatile investments that carry significant risks, including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and graphs were correct at the time of writing or otherwise stated. Field-tested strategies are not recommendations. Please consult your financial advisor before making a financial decision.