VORTECS Report: Damn it, Musk, now you also play with AAVE?

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Who knew what and when did they know?

Investigating Watergate in 1973, Senator Howard Baker Jr. wanted the answer. Thanks to a few journalists, he finally got it. And while the stakes might not be that high, the team at TBEN Markets Pro are quite curious about some interesting crypto data this week.

The VORTECS ™ score includes sentiment analysis, tweet and trade volume, and price action as components of the algorithm – which are then weighted according to a proprietary formula based on their similarity to the conditions. historical.

If there is a similarity between these factors, the score will be higher where historical precedents have most consistently led to higher prices.

But while the score is generated by an algorithm, sometimes the raw data can also tell a story.

AAVE idea

First, here’s a graph of the tweet volume for AAVE this week, compared to the price of the DeFi asset.

Tweets are obviously public information, but what are the odds that most retail players in the crypto markets will be able to absorb this outlier and analyze its significance? The VORTECS ™ score can however – it is not touched by human hands, and as one of the components is based on the whole Twitter universe (most algos only receive a subsection of the fire hose), it is essentially omnipotent when it comes to tweeting data. .

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And of course, the VORTECS ™ score started to increase very soon after this big increase in tweet volume, as shown in the graph below.

So what is going on here? An AAVE army arises to pump the token? Some kind of amazing news that didn’t affect the price until 24 hours later?

Well, here’s the kicker for all those conspiracy theorists: it’s pure coincidence. Clear and simple.

And in fact, it all comes back to Elon Musk… in a roundabout way. Because everything in crypto is done these days.

On Saturday Night Live this week, which was hosted by fanboy Doge, he participated in a sketch featuring the acronym ‘AAVE’, which appears to have resulted in a large volume of tweets regarding ‘African American vernacular English’ on the next couple of days.

In fact, even the Urban Dictionary tweeted about the acronym, although the tweet is (as you would expect from an August website) NSFW. The show’s co-writer has been charged with cultural appropriation due to the use of certain black vernacular terms on the show, and as we all know, outrage is hitting social media.

So … here is a fantastic learning moment for sentiment analysis in the crypto market: proof that causation and correlation are not the same thing.

In this case, AAVE (the crypto asset) has indeed exploded following the rise in Twitter volume for the term AAVE (an acronym). And although the VORTECS ™ score selects tweets using artificial intelligence to remove those that don’t match the context the algorithm is looking for… maybe this time he was duped. But don’t worry, Markets Pro will filter out this term in the future.

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Damn it, Elon Musk!

Alpha before Alpha?

Alpha Finance has no connection with Musk (as far as we know), so we’re just going to treat this as a curious outlier.

The red arrow in the chart below shows an unusual trading pattern declared for 24 hours, followed by an almost 50% rise in the price of ALPHA.

As it turns out, Alpha Finance got its own news this week as the team announced on May 10 that they would be launching an Oracle aggregator.

Following this unusual pattern and the publication of the news, the VORTECS ™ score also began to increase.

As is often the case when prices rise, trading volume has skyrocketed along with the price action. But the abrupt introduction of the May 9 outlier, and its equally steep decline, could lead one to believe that this was a trading robot that was on and off again.

So why would someone shift trading volume so significantly before a major news story… and how would someone time it so well?

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Or in other words… who knew what, and when did they know?

Best returns from strategies tested live by TBEN Markets Pro

The Markets Pro team has followed 42 possible strategies since the launch of the VORTECS ™ algorithm on January 3, 2021. The current best returns, as detailed in this document on the methodology used, are as follows:

Holding Bitcoin: 47% return

Hold the Top 100 altcoins: 426% return

Best performing time-based VORTECS ™ strategy: 3199% yield

Best performing VORTECS ™ strategy based on scores: 3682% yield

TBEN Markets Pro is available exclusively to members on a monthly basis at $ 99 per month, or annually with two free months included. It features a 14-day refund policy, to ensure it meets subscribers’ crypto-trading and investment research needs, and members can cancel at any time.

Important disclaimer

TBEN is a publisher of financial information, 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 does not represent future results. Figures and graphics are correct at time of writing or as otherwise specified. Strategies tested live are not recommendations. Consult your financial advisor before making any financial decisions. Full terms and conditions.