Despite Bitcoin tanking 65% in 2022, a single crypto algorithm gained 176.31%

Key points: 

• The data firm The Tie developed the VORTECS™ Score, an algorithm that determines how bullish or bearish current trading conditions are for a given crypto asset. The more points on the score, the more bullish an asset is now. 
• The "buy 85, sell 80" strategy means that traders can buy assets above 85 points, which is considered strongly bullish. Then, once the asset falls below 80 points, you "sell" the asset.
• Since the beginning of 2022, Bitcoin -65%, Ether -68%, while strategies based on VORTECS™ have returned an average of +81.50%.

Before we dive into how a simple rule can create the kind of insane investment returns mentioned in the headline — during one of the worst crypto winters in recent history — let’s get one thing clear.

You cannot replicate this now. This is not just a back-tested strategy. It's a real-life strategy - although you're about to see historical results.

This is no longer a thought experiment or a proof of concept; this is the real way to make money trading cryptocurrencies.

For our purposes, it's also a perfect way to illustrate how simple strategies can work in real life for real traders - even during extreme market declines.

So, let's go into detail. What can you do with this algorithm today?

What does "buy 85, sell 80" mean?

This is the basic premise. The data firm The Tie developed the VORTECS™ Score, an algorithm that determines how bullish or bearish current trading conditions are for a given crypto asset.

The score is based on historical data, essentially scanning the entire history of a coin or tokens, looking for similarities to what they are currently observing.

It looks for various similarities and outliers — for example, trading volume, recent price action, social sentiment, or even the number of tweets about the asset.

When it finds similarities, it looks at what happens next. Are assets going up or down? How consistent is this movement? How important is it going up or down?

Combining all these data points, creates the VORTECS™ Score, a dynamic and evolving assessment of current trading conditions for each supported asset. The higher the score, the more optimistic the outlook - and the more confident the algorithm is.

Conversely, very low readings are bearish (with the same confidence). A neutral score of 50 means that the algorithm sees no significant correlation between current conditions and past price action.

The platform provides traders with a range of strategies.

The "buy 85, sell 80" strategy means that traders can buy assets above 85 points, which is considered strongly bullish. Then, once the asset falls below 80 points, you "sell" the asset.

This of course happens on the stock exchange. Or traders can simply "trade" assets on paper to test the algorithm.

For example, if Solana has an SOL of over 85 and is the only asset with that high score, a trader can invest a percentage of their current portfolio in SOL. But if Binance’s BNB subsequently also exceeds 85, traders can allocate a different percentage of their portfolio to BNB. Or not. This is your choice.

So why is it valuable to know this?

The point here is to evaluate whether the VORTECS™ algorithm does its job well.

When it sees bullish scenarios, is it mostly right? Do prices generally go up, as the score goes up? Obviously, the answer is yes.

Buy 85, Sell 80 is just a strategy. There are other strategies that create huge ROI in 2022.

For example, buy 90 and sell 85. This strategy has a return of +96.89% in 2022. More powerful strategies include:

Buy 90, Sell 90 | +159.15%

Buy 85, Sell 75 | +102.65%

In fact, since the beginning of 2022, Bitcoin has returned -65%, Ether has returned no better at -68%, while strategies based on VORTECS™ have returned an average of +81.50%, beating BTC and ETH respectively.

This indicates that VORTECS™ is working properly. Overall, it demonstrates that a digital asset's historical trading conditions over time can be a useful indicator of the asset's current state.

In other words, high VORTECS™ scores have been shown to correlate with price appreciation. Not in all cases, not for every asset...but in general, the results for 2022 are compelling.

Warren Buffett once said (perhaps borrowing from George Wilhelm Friedrich Hegel): "What we learn from history is that people don't learn from history."

(As a crypto skeptic, he might want to reconsider his position.)

That's what the VORTECS™ Score is all about. Learn from history. This is why a real return of 176.31% during one of the worst crypto winters in market history is significant.

It tells us that we are looking for the right story.