Automated Trading Strategies
Last updated
Last updated
We spent a lot of time refining and processing data over the last year in order to find ways to best use this social data to be useful for trading/investing. However, we don't want you to take our word for it, we want to backtest that it works so we can show you results rather than theories. To do this, we partnered up with TradingStrategy.AI, an incredible team that has spent the last two years developing a python framework that is able to trade on-chain while giving developers advanced quant and risk management tools enabling us to put our ideas to work.
The following is an overview of how TrendMoon has integrated with their system so we can push out strategies that are completely non-custodial and operate within their own chains.
This integrated system combines social sentiment analysis, market data, and automated trading execution to create a comprehensive DeFi trading solution.
TrendMoon serves as the social intelligence layer of the system. It analyzes vast amounts of social media data using AI to identify trending topics and assets in the crypto space. This provides valuable insights into market sentiment and potential upcoming trends.
Acting as the central "brain" of the system, TradingStrategy.AI performs several crucial functions:
Data Integration: It combines social sentiment data from TrendMoon with market data extracted from Web3 pools, creating a rich dataset for analysis.
Strategy Development: The platform provides tools for creating and backtesting algorithmic trading strategies, allowing for sophisticated strategy design.
Quantitative Analysis: It offers advanced tools for risk management and quantitative analysis of trading strategies.
Signal Generation: Based on the combined data and strategy rules, it generates trading signals and decisions.
Enzyme acts as the execution and management layer of the system:
Asset Custody: It securely holds the assets in vaults, ensuring proper management of funds.
Trade Execution: Based on signals received from TradingStrategy.AI, Enzyme executes the actual trades on various DeFi protocols.
Accounting: It handles all the accounting aspects of the strategy, tracking performance, fees, and other financial metrics.
TrendMoon continuously feeds social sentiment data to TradingStrategy.AI.
TradingStrategy.AI combines this data with real-time market information from Web3 DEX pools.
Using its suite of tools, TradingStrategy.AI analyzes the data, applies the defined strategy rules, and generates trading signals.
These signals are sent to Enzyme, which then executes the trades, manages the assets, and handles all related accounting.
The performance data from Enzyme can then be fed back into TradingStrategy.AI for strategy refinement and optimization.
This integrated system allows for a full-cycle trading process that leverages social sentiment, market data, advanced strategy development, and automated execution, all within the DeFi ecosystem while remaining non-custodial.
