Let me introduce you to my AI quant for pair trading
I've conducted an experiment since watching the democratic AI voting system that PewDiePie showcased in his last video
How it works 👇
First step is data collection:
- Give the coin you wanna long (your own bias)
- Collects market data for the top 50 markets
Then we move to the pair trading analysis:
- Fetches 90 days of historical candlestick data
- Measures volatility and price spread
- Runs cointegration (Engle-Granger, Johansen, KSS)
- Analyzes spread using Ornstein-Uhlenbeck framework (z-scores, mean reversion speed, half-life)
We feed the data to AI with different personas, so we have multiple strategies to rank:
- The Degen Maximalist
- The Conservative Analyst
- The Macro Trader
- The Quant Optimizer
- The Contrarian Skeptic
Then they all share their results and vote on different criteria for the best strategy to adopt:
You also get nice logs and a summary of what happened so that you can understand and debug their thought process
You will get a nice report for each altcoin to pair trade with all the metrics calculated beforehand
In the end, you get a report table of the suggested positioning using sharpe ratio maximization for calculating the optimal weights for the short positions to pair with
Fun little project to play with.
Do you want me to open a @HyperliquidX vault that will automate this strategy using $BTC & $HYPE on the long side of the pair trade?
AI would TWAP in & out of the short positions to adjust correctly every X hours or after big % change in the market.
Still have to think about this 🧠
@HyperliquidX Alright created the @HyperLiquid vault, deposited 10k$ and you can join:
The first strategy is running:
- TWAP in 4hours
- When new deposit TWAP 1hour to match new balance
@HyperliquidX @Hyperliquid Here are the first picks and AI democratic votes reasoning based on the gathered data:
SHORT $BCH 22%
SHORT $ADA 20%
SHORT $SOL 20%
SHORT $DOGE 19%
SHORT $LINK 19%
@HyperliquidX @Hyperliquid I will keep you updated next week when we have some results to share before rebalancing into new picks
hyperliquid
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