Defying the bear market, this automated strategy is up 15% so far in 2022
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™ Score, an algorithmic indicator available to the subscribers of Cointelegraph Markets Pro that is designed to use historical data on crypto assets’ performance to determine whether their current conditions are bullish, bearish or neutral.
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.
The most important thing about VORTECS™ Score-based testing strategies is that they are not meant to be directly replicated by human traders. Rather, they serve as a tool to assess the overall efficiency of the model over a period of time.
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™ Score, the more confident the model is
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