The so-called “Coinbase effect” has been scrutinized multiple times by data companies like The TIE and Messari, and the verdict remains clear: Crypto traders who pounce on new Coinbase listings within seconds of their announcement typically make substantial profits.
As such, this week’s VORTECS ™ Report primarily focuses on a couple of big gains for Cointelegraph Markets Pro subscribers through the NewsQuake ™ service, which delivers market-moving news directly on a dedicated Discord channel and via in-browser alerts at blazing speed.
NewsQuakes ™ come from a real-time aggregation engine, collated from over a thousand primary sources every minute and analyzed by an AI algorithm to determine the historical significance of the news. NewsQuakes ™ are trained on key gambling announcements, exchange listings and associations, and since they are delivered without human intervention, they can often be the fastest way for market participants to find out about major events in the marketplace space. cryptocurrency.
As illustrated in the chart, the price of Enjin Coin (ENJ), one of the tokens listed by Coinbase this week, had been gradually falling after a major rally in March. However, as soon as the Coinbase news broke, ENJ’s price soared from a low of around $ 2.13 to over $ 3.90 – with the first few minutes of trading accounting for a substantial chunk of that appreciation.
The NewsQuake ™ was delivered to Markets Pro subscribers one minute after the Coinbase tweet (yellow circle). And while it is possible that a Twitter user who was actually looking at the Coinbase feed at the time of the announcement saw the information more quickly, there are few dedicated enough to do so 24 hours a day.
At other times, NewsQuakes ™ are actually delivered before Twitter users know about an ad. For example, OKEx’s own blog post about the Konomi Network’s KONO token listing appeared at 7:06 am UTC on April 7. The announcement was posted on Cointelegraph Markets Pro’s Discord channel in the same minute, but it didn’t appear on Twitter until 7:36 am UTC.
Cointelegraph Markets Pro also offers the VORTECS ™ score, a weighted score derived from an algorithm that compares current market conditions to historically similar market landscapes.
The score comprises a number of factors:
Volume: A measure of the amount of an asset that is traded through supported exchanges.
Perspective: A measure of whether or not current market conditions are favorable, compared to historically similar conditions.
Real price: A composite price derived from an average of prices across the relevant exchanges.
Volume of Tweets: A measure of the absolute and relative number of tweets about an asset in the last 24 hours.
Elevation: A measure of how much the price of an asset has risen or fallen after market conditions historically similar to those currently observed.
Confidence: The degree to which current conditions are similar to historical ones, with increased confidence also including the consistency of asset price movements after those conditions.
Feeling: The positivity or negativity of the talk on Twitter about the cryptoactive, derived from a complex proprietary algorithm developed by The TIE.
This week’s VORTECS ™ results were somewhat below the historical score averages, lending credence to the theory that, even when optimized for a 24-hour time frame after identifying such market landscapes, Long-term results are more representative of the score analysis than the one-week windows.
Of the 42 strategies currently being analyzed by the Markets Pro team, the highest performing strategy since its inception on January 5 remains a time-based strategy, in which the algorithm notes the price of any crypto asset that crosses a given VORTECS. ™ Score and check it again after a specified period of time.
Markets Pro also looks at a variety of score-based strategies (Buy at 85 / Exit at 75 and so on), which have also consistently outperformed the market. A full description of the testing methodology is available.
Until April 7, the best strategy (Buy at 90 / Exit at 168 hours) had obtained a 1.927% yield since January 5, which compares favorably with Bitcoin holding (76%) or an equally weighted basket of the top 100 altcoins (365%).
Time-Based Strategies: All-Time Performance
Score-Based Strategies: All-Time Performance
Time-Based Strategies: Weekly ROI
Score Based Strategies: Weekly ROI
Cointelegraph Markets Pro is exclusively available to subscribers on a monthly basis at $ 99 per month, or annually with two free months included. It has a 14-day money-back policy, to ensure that it meets the crypto trading and investment research needs of subscribers, and members can cancel at any time.
Cointelegraph is a financial information publisher, not an investment advisor. 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 graphics are correct at time of writing or where otherwise specified. Live tested strategies are not recommendations. Consult your financial advisor before making financial decisions. Full terms and conditions.