Crypto trading is mostly done through bots these days. Most experts traders use bots in one form or another as the market never sleeps but humans do and they have to make an alternative arrangement for when they are in the nocturnal state. Recently, a bot Proof-of-Concept (PoC) started trading with $100 and through day trading, it turned the initial investment into digital assets worth a whopping $36,250.
But, before we tell you any more about this extraordinary trading achievement, you have to realize that it was a PoC and that means that it wasn’t done on an actual exchange but through a spreadsheet. In the real world, big problems may present themselves like the exchange fees, which are exorbitant and which would have affected the final digital tally a lot and may reduce itself to a much more believable figure. So, this was more of an experiment into a new trading analytics being pushed forward by Cointelegraph Markets Pro called VORTECS score. The new statistic is being touted as a useful metric for the future but it is still very early in development.
The new PoC was tested through the VORTECS score. According to this move, if the VORTECS score of any asset goes above 80 (which is considered bullish), the bot buys it and then sells it after 12 hours. Through this approach, the bot amassed $36,250 from a mere investment of just $100 according to the data that is present in the spreadsheet. While it is simply not possible in the real word as exchange fees would eat up a major part of the profits and it might not be profitable at all, if fees are too high. But, it does show that new metrics are coming in the market that are interesting to consider. VORTECS, Cointelegraph claims considers social media activity, short-term trend, historical data, etc to come up with the score.
However, even as these complex metrics come into the market, it is evident that basics of the crypto sector don’t change and it is best to start from there and then start to use complex systems like VORTECs in your trading bots. The social media analysis part is also very tricky and often manipulated heavily as well. This means that no such complex analytics can come without a pitfall and you just have to look hard for it. That doesn’t mean that it can’t be useful at times but always tread with caution when it comes to big companies coming up with their ultimate metrics that can turn pennies into Gold.
Image Source: Pixabay.com
Don’t worry, we hate spam too
one weekly digest, just the important stuff.