It was a spectacular week for the Cointelegraph Markets Pro VORTECS ™ score, which notified subscribers of several of the top cryptocurrency price changers hours before the price started to rise.
Dogecoin (DOGE) was the standout performer of the week and confused analysts looking for fundamental strengths in an asset – the meme coin may not really have a team or a real use case, but it has Elon Musk, Mark Cuban… And the support of their millions of fans.
Dogecoin crossed the 80 VORTECS ™ line on the morning of April 13, when the price curve was still flat around $ 0.073 (first red circle). Apparently, the model has recognized a known confluence of celebrity tweets and rising trading volume. Closer to the early hours of April 14, the price line followed and pumped all the way to $ 0.141 (first two red boxes on the chart).
And as expected, after a quick climb, VORTECS ™ anticipated a price drop (second red circle), as has happened many times with Dogecoin in the recent past. While not particularly dramatic, it was corrected to $ 0.110 (third red box) in a matter of hours.
While the 7-day chart above, captured on April 15, shows that the VORTECS ™ Score is working exactly as hoped, a later recording on April 17 (below) illustrates the limitations of any dynamic modeling algorithm entering unfamiliar territory.
The VORTECS ™ score includes sentiment analysis, tweet and trade volume, and price action as components of the algorithm – which are then weighted according to a proprietary formula based on how similar they are to historical conditions. If there is agreement in these factors, the score will be higher when historical precedents have most consistently led to higher prices.
But with DOGE this week, there are almost no parallels in history – after breaking record highs, the currency just kept going up. As VORTECS ™ could not see any historical similarities to this rapid rise, it remained fairly neutral after the first wave of purchases (orange box).
Ripple’s XRP cryptocurrency continued its glorious comeback this week after a series of mild setbacks to the Securities and Exchange Commission in their case against the company, landing them in the Top Performers section of the second consecutive VORTECS ™ report. On April 12, it went in a string of dark green VORTECS ™ scores around $ 1.37. About 12 hours later, it rose to $ 1.93 (first and second red boxes).
THORChain recorded a series of high VORTECS ™ values during a downward price move to a low of $ 10.67. About 26 hours later, the price started to climb to the next high of $ 16.46, a 54% improvement from when the first dark green score was detected.
The IOST NewsQuake ™
The April 13 announcement of a Binance strike promo with IOStoken took the asset to a 53% price hike over 24 hours. Note that there are actually two NewsQuake ™ symbols on the token’s VORTECS ™ chart close together. This is no problem: while the content of the news is nearly identical, one represents a Medium post from IOS Foundation, while the other flags a tweet from Binance’s official account.
In a game where minutes can make a difference, Markets Pro strives to deliver actionable news as soon as it becomes available. NewsQuakes ™ come from a real-time aggregation engine, collected every minute from more than a thousand primary sources and analyzed by an AI algorithm to determine the historical significance of the news. NewsQuakes ™ are trained in posting announcements, stock quotes and major partnerships, and because they are delivered without human intervention, they can often be the fastest way for market participants to learn about important events in the cryptocurrency space.
VORTECS ™ Score test results
Cointelegraph Markets Pro continues to track 42 separate strategies tested live, using a simple method outlined here.
These strategies are based on exits based on time or score. For example, the current best-performing strategy since testing began is the Buy 90 / Exit after 168 hours strategy, which measures an asset’s price when the VORTECS ™ score crosses the 90 threshold, and then exactly 168 hours from that initial measurement. The difference is the return on investment (ROI) that is recorded.
That strategy has delivered an ROI of 1,837% since January 5, which compares favorably with holding Bitcoin (87% ROI) or holding an equally weighted basket of altcoins (470% ROI) over the same period.
However, all strategies have blips – this week strategies based on entry points of 90 performed worse than those with entry points of 80, illustrating that even the most sophisticated algorithms can pick a few duds from time to time.
Time-Based Strategies: All-Time ROI
Score-Based Strategies: All-Time ROI
Time-Based Strategies: Weekly ROI
Score-Based Strategies: Weekly ROI
Cointelegraph Markets Pro is available exclusively to subscribers 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 fits subscribers’ crypto trading and investment research needs, and members can cancel at any time.
CoinTelegraph is a financial information publisher, not an investment advisor. We do not provide personal or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent and total loss. Past performance is not an indication of future results. Figures and charts are correct at time of writing or as otherwise noted. Live-tested strategies are not recommendations. Before making any financial decisions, consult your financial advisor. Full terms and conditions