You tin't predict the future, simply you can learn from the past.

And some crypto tokens are much (much) more predictable than others, when you clarify their historical trading patterns.

In fact, five cryptocurrencies, in particular, take exhibited the kind of trading predictability that could give sharp-eyed crypto traders a huge advantage in the markets.

These five tokens have all demonstrated one matter in common:

  • After strong bullish conditions were detected, they averaged an increase in value when measured subsequently 24, 48 and 72 hours.
  • After extremely bullish conditions were detected, on average they too rose later 24, 48 and 72 hours.
  • The minimum average gain over 72 hours post-obit an extreme flag was a startling 10%.

While this is a measure out of by trading activity and (of course) not a promise of hereafter operation, information technology'due south remarkable to note that these tokens, led past Avalanche's AVAX, exhibit behaviors that consistently boilerplate out to major gains, even as other tokens — including AAVE and Curve's CRV — tend to decrease in value over similar timeframes, and still other tokens exhibit few correlations to historical trading weather at all.

Background to identifying predictability

If you take been following Cointelegraph at all this by year, y'all have probably read about proprietary data intelligence platform Markets Pro and the quantitative-style trading indicator chosen the VORTECS™ Score.

In purely hypothetical, automated tests, the metric generates some mind-bending ROIs that tin accomplish dozens of thousands of percent when compounded over several months.

When it comes to putting historical precedent to piece of work as a regular investor, though, knowing each crypto asset's individual habits is more than helpful than marveling at the aggregate information. Here's one way traders could tell which assets are more likely to follow familiar paths on the way to massive returns.

get markets pro right at present

Whose history rhymes nigh?

The thought behind the VORTECS™ Score is to provide traders with a bird's-centre view on multi-dimensional patterns in crypto avails' past performance data. The central principle underlying the Score's utility is that oftentimes, private tokens behave in recognizably similar ways in terms of trading metrics and social sentiment... days before their prices explode (or tank) . When spotted early, these regularities can inform trading decisions, even though they are by no means predictive of price action.

Average historical gains

The chart features 20 coins that take had the most instances of VORTECS™ Scores above 80 or 90, counted since the platform'due south launch.

High scores indicate the algorithm'south confidence that the coin's electric current outlook is historically bullish. A score of xc, while quite rare, is expressive of the algorithm'due south confidence that prices have usually moved higher and with more than purpose when it has seen like trading weather condition in the past.

The bars correspond boilerplate gains after certain times from striking the high score. For example, the green bar, marked equally 72/90 in the legend, represents boilerplate gains that the asset has generated 72 hours after striking the score of ninety; the orange bar shows the average returns after 48 hours from hitting the VORTECS™ Score of 80.

AVAXis perhaps the well-nigh obvious, consequent trade for crypto investors using historical analysis every bit part of their research. Not only accept high scores directly correlated with cost appreciation but the gains accept reinforced the algorithm'due south thesis perfectly.

Score 80, Sell later on 24 hours: Average proceeds 3%

Score 80, Sell afterwards 48 hours: Average gain six%

Score lxxx, Sell subsequently 72 hours: Average proceeds 9%

Score 90, Sell afterwards 24 hours: Average gain 12%

Score 90, Sell after 48 hours: Boilerplate proceeds 16%

Score xc, Sell later on 72 hours: Boilerplate gain 28%

Some others are besides highly consistent, with bars sitting closely together.

Axie Infinity Shards (AXS) is a keen example: 4% at 24/80, 7% at 48/fourscore, nine% at 72/80.

Others delivered modest returns later hitting 80 just did exceptionally well later scoring 90:

For example, Tellor'due south TRB, with average returns of 5% at 72 hours after hitting 80 and 17% at 72 hours after scoring 90.

Some bars even betoken beneath zero, marker those tokens that tended to lose value following high VORTECS™ Scores — however, these are vastly outnumbered.

The majority of crypto assets that cross the VORTECS™ Score of 80 run into consequent appreciation in the side by side 24 to 72 hours, and often for a longer time.

What the chart suggests is that traders tin exist more confident when the VORTECS™ Score lights up on AXS, MATIC, AVAX, LUNA and TRB while exercising more than caution with the likes of AAVE or CRV.

The Markets Pro team constantly tracks the functioning of individual assets too as the Score itself. A detailed breakdown of relevant data points is published every weekend in the weekly VORTECS™ Study to help subscribers make the best out of their membership.

Cointelegraph Markets Pro is available exclusively to members on a monthly basis at $99 per month, or annually with two free months included. Information technology carries a 14-day money-back policy, to ensure that information technology fits the crypto trading and investing enquiry needs of subscribers, and members tin cancel anytime.

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 meaning risk including the gamble of permanent and total loss. Past performance is not indicative of future results. Figures and charts are right at the fourth dimension of writing or as otherwise specified. Alive-tested strategies are not recommendations. Consult your fiscal counselor earlier making financial decisions.