A recent analysis of algorithmic trading tools shows what some traders knew to be true intuitively – that consistently achieving 5% gains in today’s market is actually pretty good!
Beau Linighan reports at Cointelegraph about something called the VORTECs score that shows how the algorithm calls shots resulting in rather consistent 5% returns.
By contrast, Linighan points out, many traders chasing higher returns tend to lose money over time. As Linighan says, for every Shiba Inu moonshot that is successful, there are a bunch more that fail to deliver.
All of that has led to a class of trader averse to major risk, who Linighan characterizes this way:
“They trade on probabilities rather than hoping that Token X goes parabolic next week,” Linighan writes. “They win on aggregate numbers instead of sexy-looking one-offs. If you offered them average weekly returns of over 5% on trades… they’d bite your hand off.”
You may or may not be that vociferous about your trading strategy, but keeping in mind a reasonable level of gain and yield can be helpful, whether you’re rebalancing a portfolio, thinking about staking or farming tokens, or investing in funds.
“As an extremely volatile market, the crypto market offers some of the highest returns if you get in and out at the right time,” write analysts at Trading Education, while also offering a list of the biggest hitters making waves in the crypto world. “But spotting the right cryptocurrencies to explode can be tricky…”
That 5% number is pretty good in the equities world, too, with proponents of SP500 funds like SPY offering similar intelligence: the SP500 returns something between maybe 5-10% a year; traders who want more often lose by making risky plays. ETFs can help with diversification, but in the end, getting greedy can destroy your long term gains.
We’ll continue to report on the evolution of the crypto community and new opportunities for investing. Always do the research and aim for reasonable results for more successful outcomes!
