AIZEN Tech

FLOWTRADE.ai’s AIZEN AI marks a groundbreaking shift in quantitative trading, leveraging advanced predictive technologies to navigate the complexities of modern financial markets. Developed and trained over an 24-month project, with a critical 6-month intensive phase, AIZEN AI transcends the limitations of traditional algorithmic systems. Instead of relying on static predetermined rules, it dynamically learns and adapts to market conditions in real-time, making it a true innovation in AI-driven trading.

The system's development was spearheaded by NASDAQ-experienced data scientists, Dr. Stephen Friel, Ph.D. and Dr. Casper Lui, Ph.D., in collaboration with ML DevOps Engineer Cosimo Laia. Complementing their expertise, the AIZEN Suite benefits from the leadership of the former Head Analyst of Danske Bank ($40B AUM), ensuring institutional-grade precision in its design and implementation.

Current Performance and Development

AIZEN AI’s 0.1 foundational model has already achieved significant milestones, demonstrating predictive capabilities that deliver over 400% annualized returns and a 69% hit rate across 64 cryptocurrency pairs. Unlike traditional algorithms, AIZEN employs a learning-based approach to identify profitable patterns, adapt strategies and refine its predictive outputs dynamically.

Our ongoing development focuses on expanding these capabilities, introducing new features to further enhance adaptability and scalability. While currently tailored for cryptocurrencies, AIZEN is actively evolving to address equities and forex markets, underscoring its potential to redefine trading across asset classes.

What is AIZEN?

AIZEN is an advanced, temporal fusion transformer-based AI model designed specifically for technical market analysis. While it shares some foundational similarities with large language models like ChatGPT in terms of its autoregressive nature and underlying transformer architecture, its focus and functionality are entirely different. Instead of processing natural language tokens, AIZEN works exclusively with technical market data to generate precise trading predictions.

How AIZEN Works

Input Data:

• AIZEN V0.1 does not rely on sentiment analysis or external factors like news or social media trends. Instead, it focuses solely on technical market data derived from historical price movements, volume and other calculated technical indicators.

• These indicators are carefully selected for their predictive power, ensuring the model learns the most meaningful relationships within the data.

Transformer Architecture:

• Similar to how ChatGPT predicts the next token in a sentence, AIZEN’s transformer model predicts the future price movement of a given asset. It analyzes past technical indicators and identifies intricate patterns, relationships and correlations within the data to forecast price changes.

• Temporal Fusion Transformer combines the best aspects of autoregressive models, RNNs and attention models that allow the model to process sequences of market data over time, learning how past movements and indicators relate to future outcomes.

Prediction Output:

• AIZEN is currently optimized to generate predictions for 72-hour time horizons. It predicts the percentage price change of each token it covers, providing traders with actionable insights into expected market movements.

• While the 72-hour window is its primary focus, the model is inherently capable of generating predictions for multiple timeframes (e.g., intraday or long-term predictions). Expanding into these horizons is part of future development goals.

Breadth of Coverage:

• Currently AIZEN simultaneously monitors and predicts movements across 64 preselected tokens and is set to expand its coverage to a larger number of tokens in the future. This extensive reach enables it to provide diversified insights, empowering traders to make informed decisions across a broad range of assets

How AIZEN Differs

• Instead of processing tokens converted from text, AIZEN processes numerical data from market time series.

• It applies machine learning techniques to analyze derivatives of time series data, which is crucial for understanding the momentum, volatility and other market dynamics that drive price changes.

Technical Innovations

Data Investigation and Engineering

With the focus on refining AIZEN AI's data processing capabilities, the team meticulously addressed data investigation, cleaning and engineering, with the support of Nosis’s developers proving indispensable in orchestrating a seamless integration.

Deployment and Real-World Application

Deployment Challenges

The deployment of AIZEN AI was a critical phase, marked by a focus on cloud functionality and scalability. The team ensured that AIZEN AI was not only operational but also optimized for real-time trading environments.

Real-World Testing

AIZEN AI underwent elaborate real-world testing, surpassing other AI trading software in reliability and performance. It demonstrated the ability to identify and execute optimal trading strategies more efficiently than human traders.

Conclusion

AIZEN AI by FLOWTRADE.ai is not just an advancement in trading technology; it is a complete reimagining of what is possible in algorithmic trading. AIZEN AI is not the culmination but the commencement of an era in quantitative algorithmic trading. It lays a solid foundation for the scalability and future enhancement of the AIZEN platform, promising continuous evolution in the face of market complexities and technological advancements. As the trading world evolves, so too will AIZEN AI, scaling new heights and pioneering further innovation.

Vision and Future Development

Looking ahead, AIZEN has ambitious plans:

• Incorporating intraday predictions and expanding into other time horizons to cater to diverse trading strategies.

• Maintaining a laser focus on technical analysis, ensuring that traders receive data-driven insights without the noise of sentiment or external factors.

In essence, AIZEN is more than a tool—it’s a specialized, AI-driven ally for traders. By harnessing the power of transformers and focusing exclusively on technical market data, it empowers users to make informed trading decisions with unparalleled precision.

Appendices

• Detailed Technical Specifications

• Algorithmic Descriptions and Methodologies

• Data Engineering and Model Training Processes

• Case Studies and Real-World Application Results