AlphaNet Next-Gen Upgrade Overview
Last updated
Last updated
This update is to provide a sneak peek and overview on AlphaNet’s Next-Gen upgrades that are estimated to roll-out in 2 weeks as well as AlphaNet Mainnet Launch.
The next wave of next-gen updates is significant as it will add transformative new AI models and strategies that further differentiates AlphaNet as the leading AI platform for crypto trading. This also signifies AlphaNet’s development has reached a stage where it can scale with a diverse set of AI capabilities and offerings.
AlphaNet Mainnet will be launched along with the upcoming wave of next-gen updates. Originally, AlphaNet core developers and strategic partners’ plan of launching Mainnet was first announced last December. The postponement was due to strategic reasons, as further testing of the technology, userbase, and growth model was determined to be required.
In the past few months in terms of tech, offerings, and strategic partnerships, AlphaNet has made significant leaps, and now we are in a ideal position for Mainnet launch.
Below is a preview of some of the new AI models and tools that will be included in the next upgrade and Mainnet launch.
Currently most of AlphaNet’s AI offerings provide value in use cases of directional trading, directional signaling, and trend strength. AI Directional Risk is a one-of-a-kind and easy to use model that provides unique value in the area of risk and position sizing.
With this model, traders will be able to understand when to take higher vs. lower risk, which translates to larger vs smaller position size per-trade. Rigorously backtested and backed by months of R&D, it’s proven to reduce maximum drawdown on BTC and ETH directional trading strategies by as much as 30%. AI Directional Risk works the best on directional and trend following strategies and approaches, but also is effective for rangebound and mean reversion strategies.
The algorithm behind AI Directional Risk utilizes at a fundamental level AI model-predicted probabilities of positive and negative returns across various time horizons. When the positive and negative return probabilities within timeframes of 15m to 4H are “at odds with each other”, position size and risk is recommended to scale down, signifying weak directional certainty. Volatilities are also factored into the picture when determining “directional certainty” – rangebound market behavior with large bursts of volatility will also likely trigger indication of higher risk and smaller position size.
Most of AlphaNet’s previous AI trading strategies and insights have been mostly directional and trend-focused, with the exception of Min/Max. For traders to add versatility to their trading edge across various different market environments, switching between strategies suitable for different market regimes may be optimal to alpha generation.
AI MeanRev is a completely new type of strategy that is geared towards rangebound, mean reversion, and oscillating market environments, but also performs with respectable risk-adjusted return during trending markets. Instead of signaling trades where momentum is building, this model “likes” to enter trades at predicted inflection points. AI MeanRev can be used alongside ViperAI to tackle more uncertain or rangebound market regimes.
If we take a look at AI MeanRev’s historical backtest performance for BTC during range-bound leaning market regime months, we can see that it’s alpha-generation ability during such environment, with a high win-rate and an asymmetric average win/loss.
As the case with AI MeanRev, AI OptimaShort is a completely new type of strategy that will be added and be complimentary to existing AlphaNet offerings. There are market regimes in which a gradual or drastic downtrend is the prevailing momentum – while market neutral strategies are able to capture a part of the alpha, they rarely are able to maximize profits on downward volatility.
To understand why, experienced traders can simply observe that the directional movements and volatility is very different for uptrends and downtrends. Uptrends tend to have a gradual buildup and in multiple structured waves, whereas downwards volatility occurs at a much faster rate and momentum, often occurring in “bursts”. Much of this is due to higher amounts of impulsive market behavior and fear during significant downwards price action.
Enter AI OptimaShort, which serves as a strategy specifically designed for bearish and downtrend market regimes, allowing traders to capture maximum alpha and superior risk-adjusted returns during these phases. OptimaShort is a short-bias strategy, which means that it performs optimally during downtrend environments, but still provides long signals within the strategy.
Below are the historical performance stats for BTC during bearish-leaning or downtrend months:
Hypermatrix is an institutional and enterprise-grade AI custom strategy creation infrastructure, first announced in March of this year. Hypermatrix represents the next level of technology breakthrough in the AI-driven trading space. With the rollout of the next update and AlphaNet Mainnet, Hypermatrix will be available to select DEX and institutional partners via API.
Hypermatrix’s API partners will be able to leverage custom AI trading strategies optimized across 30+ parameters, with over 20 million AI strategy and model combinations. 3rd party interest from DEXs, exchanges, and DeFi protocols has been rapidly spurring the growth of a trading ecosystem around AlphaNet.
Hypermatrix initially will be API only, and partner integrations will be assisted by key technology provider and strategic partner Tensor. In later iterations of Hypermatrix, institutional users and partners will be able to create and customize strategies using a web-based UI control panel.
Along with the upcoming next-gen upgrade and Mainnet release, ViperAI will be upgraded to a new version, with higher Sharpe Ratios, lower drawdowns, and more balanced long/short signal frequencies.
Trading automation, by platform development strategy, was not a key area of the initial AlphaNet premise – however, introduction of trading automation solutions has always been a part of the agenda, the key in which is through which format and means. Automation of trading directly through AlphaNet is a tricky item – the technical aspect is simple, however issues such as order execution priority and size limits may extend to a user hierarchy and ranking issue.
These are ultimately resolvable through a combination of Hybrid Staking tiers and limits, but initially the task of automation will be given to our 3rd party integration partners, such as exchanges or DEXs. This is mutually beneficial to both AlphaNet and the partner, as the partner becomes essentially a “channel” for trading execution and automation, adding more value in the process.
As many of the Phoenix community has noticed, the AlphaNet AI trading ecosystem has been growing rapidly, with new DEX and DeFi partnerships on a weekly basis. This is to be expected – trading and finance is one of the main pillars of the crypto ecosystem, and AlphaNet is the leading AI platform for crypto trading. With the rollout of Hypermatrix and customizable AI strategies, we should see AlphaNet’s ecosystem accelerate even faster – this is barely the beginning.
Additional to utilizing granular high frequency raw data as the basis for various AI strategies, signals, and insights, AlphaNet is also planned to have AI modules geared towards fundamental analysis and longer term investing. Hence alternative data sources, including social media raw data feeds, on-chain data, and macroeconomic data streams will be a part of the picture.
Additionally, generative AI (specifically LLMs) will be an additional part of AlphaNet in the longer term, to assist in the form of an AI-based trading assistant and agent. The release of Phoenix SkyNet’s Specialized LLMs will accelerate the release of AlphaNet’s Trading Assistant LLM.
The AlphaNet Terminal, as announced in April, is an ongoing module (desktop application) that is under development, and is built with the goal of developing a next-generation crypto trading terminal with AI at the core, powered by AlphaNet.
