Hello, TradeSmith Family,
Our recent Insider Updates have focused on the updates to TradeStops and the features of Ideas by TradeSmith. There hasn’t been too much focus on crypto, but we’re changing that up today!
One area we especially want to highlight today is Crypto Ideas by TradeSmith. This program functions much the same as our traditional Ideas by TradeSmith product, but with a focus on cryptocurrencies! It has a Market Health section, TradeSmith’s Lab, and a Crypto Finder. Given the crypto market’s recent volatility, we’ll go ahead and focus on Market Health this week.
As we’re getting started, now is a good time to log in so you can follow along; let’s see just how the crypto markets have been performing.
Crypto Market Outlook
As we mentioned, the crypto markets have been volatile lately. In fact, we saw Bitcoin fall 12% in just one day. And with continuing regulation talks, both Bitcoin and other alt coins are suffering.
The Market Outlook section of our program helps you assess the health of the market — both in peaceful and volatile times. We apply our Pure Quant Qualification indicator to the markets to see if now is a good time to be investing in crypto.
The Pure Quant Qualification indicator calculates how many cryptos are in the CSI green zone, with an average VQ under 80%, and trading without a loss since CSI entry.
Our back-testing shows that when 20% or more of the cryptos we follow qualify through our Pure Quant filter, it’s an indicator of bullish signs. We predicted the most recent crypto bull market two weeks before it began based on this indicator.
As you can see in the chart above, we recently dropped below the threshold of 20% of coins qualifying for Pure Quant. Now, that doesn’t necessarily mean you have to exit crypto entirely, but it might be a good time to take a pause on any new purchases. It’s an indicator that extra caution may be warranted. Nobody wants to buy when the market is high, so this could be an opportunity to get in at a lower price point by watching our indicator.
Even when the markets are volatile, there are still opportunities to be found. Check out some of these strategy articles that highlight techniques for finding coins poised to breakout to the upside.
Discover Well-Performing Cryptos
One thing our research has found is coins in the Crypto State Indicator (CSI) Green Zone in both USD and BTC pairings seem to perform nicely after going green. Digging in deeper, we discovered a strategy that produced an average return four times higher than that of Bitcoin alone. Continue reading for your potential gains…
We studied thousands of trades at different entry points and found the key to this potential outperformance is to compare the cryptos’ VQ in both dollar-based terms and bitcoin-based terms. Finding coins where the VQ as measured in USD is lower or only slightly higher than the VQ as measured in BTC is key. Continue reading to take advantage of this strategy…
When a crypto has a higher current VQ than the long-term average VQ, we call that the Kinetic VQ. There’s pent up energy in the crypto bound to explode to new profit levels. Finding these Kinetic VQ cryptos is easier than you think. Learn how you can start using the Kinetic VQ right now…
Until Next Week
The crypto markets are more volatile than normal right now. But, volatility does wane eventually. If you have the patience, you can still find great opportunities out there. Our early cycles research is even pointing toward potential bullish signs come August. As we conduct further research, we’ll be sure to keep you updated on what we discover.
As always, if you have any questions, please feel free to reach out to us. Our team is always happy to help you. We can be reached at [email protected]. Just please keep in mind that we cannot provide individual investment advice or answer questions about individual cryptocurrencies, wallets, or exchanges.
TradeSmith Customer Success Team