AI Nox EA

AI Nox EA

1 September 2024, 15:38
Denis Kurnev
0
37

Introducing the first multi-currency Forex advisor that uses AI with GPT-4o, which actually applies it in trading, not just in theory.

I'd like to write a little more detail about what the GPT-4o model includes.

GPT-4o: next-generation AI

The main event of the day was the announcement of the new flagship model GPT-4o. OpenAI CTO, Mira Murati, characterized GPT-4o as the most powerful and fastest model available. Unlike its predecessors, the new model combines all the advanced features of GPT-4 with a stunning improvement in speed and performance. 

GPT-4o is not only the most efficient model, but also the smartest. The graph below shows the experimental results of the model on text benchmarks.

GPT4o

Also AI NoX EA uses High-volume trading (HVT: to capitalise on small price fluctuations in highly liquid markets.

High-volume trading (HVT) is a trading strategy characterized by executing a large number of trades within a short period. This approach is typically employed by institutional investors, hedge funds, and advanced trading systems like algorithmic or AI-driven platforms. The key objective of HVT is to capitalize on small price fluctuations in highly liquid markets, allowing traders to generate significant profits from a vast number of trades, even if the profit per trade is minimal.

HVT

Benefits:

  • Potential for a steady stream of profits.
  • Less dependence on long-term market trends.
  • Opportunity to profit even in relatively stable markets.
  • Used for trading on micro-movements of major currency pairs.
  • Can be used for arbitrage between different forex brokers or ECN.
  • Often combined with news and economic data analysis to make quick decisions.
Japanese Yen filter example


Concept:

HVT is based on executing a large number of trades in a short period of time. The goal is to profit from small price movements that occur within milliseconds or seconds. But it is important to note that with the help of GPT4o and matrix factorisation it was possible to reduce the dimensionality of the data, which allowed us to get instead of many open trades to get more rare but accurate ones, also to detect hidden patterns and to improve the work with sparse matrices. In other words, the system from high-frequency, became more conservative, but accurate. 

HTV

Now let's talk about matrix factorisation.


Matrix factorisation can help identify hidden correlations between different currency pairs. This will allow traders to better understand how the movements of one pair affect others.Using historical data on prices and various economic indicators, you can build a model to predict future movements in exchange rates.Factorisation can help uncover implicit factors affecting the forex market, such as geopolitical events or economic trends that are not obvious in superficial analysis.The method can be used to optimise the allocation of funds between different currency pairs, minimising risks and maximising potential profits.The method can help in detecting unusual patterns or anomalies in the market, which can signal potential trading opportunities or risks.


MATRIX



By combining all these strategies into a single whole I managed to create AI NoX EA, which works using all the latest technologies and can work best on such currency pairs as EURUSD, USDJPY, XAUUSD. 

Matrix