What does a highly volatile asset class offer traders, beyond beating and the occasional heart attack? chance.
Nicole Virick of Prosperity Wealth Strategies in Michigan summarized it for Forbes: “Market volatility is a normal part of investment and should be expected in the portfolio. If the market goes straight up, it will be easier to invest and all of us Will be rich. “
And during the decade-long bull market on Wall Street, some participants who should have known better have forgotten it, as they have become accustomed to steadily increasing stock prices over a period of years.
JPMorgan Chase CEO Jamie Dimon, who notoriously referred to bitcoin as a “fraud” in 2017, told the US House Financial Services Committee this week that “people have my own personal advice: stay away from it.” And yet at his own shareholder meeting on May 18, he said that “a lot of our customers are asking, ‘Can we help them buy or sell cryptocurrency? And we’re investing in that as we speak. Huh.”
So why is the CEO of America’s largest bank investing in something that he advises the rest of us not to touch?
Instability is at the heart of that argument: it is an excellent case of “do as I say, do as I do”. And Dimon, and many like him in traditional financial markets, make a lot of money when the market is choppy.
Of course, there is no more market than crypto.
Over the past few weeks, volatility has returned to the crypto markets, driving bitcoin as low as $30,000 before the king of digital assets again exceeded $40,000. And altcoin has changed even more dramatically – a phenomenon that has helped Quantitative Algorithm of Cointeglag Markets Pro, VORTECS ™ scores, for posting exceptional results in automated live testing.
This chart, prepared on May 28, shows the results of the performance of the VORTECS ™ score from January 3 this year, when the algorithm went live. At the time of publication, one day later, ROI is now over 3,000% on the top strategy.
In a score-based testing scenario, the algorithm “buys” a digital asset when the VORTECS ™ score crosses a certain threshold (such as 80), and “sells” it when it crosses another threshold (such as 75). ” is.
Without employment Fancy rebalancing technique, But only to divide the portfolio among all the assets that currently require investment, Algorithm has given a return of 3,037% for its highest performing test strategy – Buying at 80, and selling when the asset crosses 80 when going back down.
For comparison, bitcoin has given just 11.2% returns since January 3, and an equally-weighted basket of top 100 altcoins has returned 247%.
The only reason Vortex ™ score In this way external returns can be made because crypto markets are volatile – which presents many entry and exit opportunities in a shorter time frame than is enjoyed by traders in traditional markets.
This may be partly a function of the 24/7 nature of crypto trading, but it is also partly because the risk tolerance of cryptocurrency investors generally agrees to be significantly higher than the CEO of Wall Street… less. For short term investment of less than.
So while there is a clear decline in volatility, including the risk of total and permanent losses, it is also a great possibility for traders who have strong research skills.
and Strong research tool.
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Cointelegraph is a publisher of financial information, not an investment advisor. We do not provide personal or personal investment advice. Cryptocurrencies are volatile investments and carry significant risks, including the risk of permanent and total losses. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or otherwise specified. Live-test strategies are not recommendations. Consult with your financial advisor before making financial decisions. Full terms and conditions.