Artificial intelligence, intelligence augmentation, simulation technologies, and a long list of advanced technology systems and principles have, in recent years, become a major part of our lives. How much influence automatable systems like these have in our lives cannot be easily measured.
Lifestyle, business, tooling…you name it. These technologies are found in everything we do. Artificial intelligence, in particular, is a wave, currently. Thanks to the advent of OpenAI’s ChatGPT, the internet has woken up to how weak our current system is, compared to what these advanced systems promise. We could go on and on about how ChatGPT and BARD (its competitor, created by Google) have been welcomed by social media, but we have even more related AI tools. In this context, MOSDEX’s arbitrage trading protocol.
I spent a couple of hours imagining how the MOSDEX arbitrage protocol uses AI, how frank this claim is, and how much extra utility it can be if other trading systems adopt it.
Information from the project’s documentation suggests that the MOSDEX arbitrage protocol uses artificial intelligence principles to study price development and orderbook patterns across integrated exchanges and deploys data collated from this empirical study to develop trading strategies that are applied to the various trades it makes.
Impressive per se, the arbitrage protocol has seen sustained profitability since launched by MOSDEX; judging from the fact that the platform has continued to run on profits generated by the protocol. the whole of MOSDEX’s ecosystem and Profit sharing Model revolves around the successful trades made by the AI-powered protocol.
Now, AI as in trading technology can be achieved. MOSDEX and a few other business prototypes that are designed to work with AI principles are clear instances.
AI is an information and pattern-intensive system. It thrives on in-depth data and re-occurring patterns and processes these two into systems that can mimic human abilities without being continuously controlled.
Trading bots have been a thing, but these are programmed using known trading principles. They usually do not generate new principles on their own. But AI-powered alternatives are self-functioning, to a large extent. Systems like these could power flexible contract trading programs, spot trading programs, and forex trading systems.
Feeding the protocol with data collection and processing technology can enable it to develop abilities that the normal human trader cannot develop. Just like ChatGPT and Bard can source the internet for data and pull together, very informative pieces; AI-powered trading protocols can surf deep into the price development patterns to develop a new pattern for each run of trades.
Backward and forward moves can be designed using this system. A look into contemporary systems shows a handful of applications for AI and machine learning languages. Both go hand-in-hand and trading systems are just one of the many that fit in.
By stated design, the MOSDEX arbitrage trading protocol does this on orderbooks. It studies the changes in order requests and how these requests are being filled. Using these data, it develops information on delays, spreads, and periodic variation in both. The information is fed into the protocol’s executing arm, and the next trade assumes a route. This route is, buying from an underpriced pair or exchange and selling on an overpriced pair or exchange.
While not confirmed yet, the AI system is also thought to control the management of funds to tone down risks incurred in a failed trade. The fund management system suggests the amount of funds that go into each trade. Riskier trades receive lower funding while safer ones receive more funding. The same goes for profitability.
About MOSDEX
MOSDEX is a tool that helps traders maximize their profits through arbitrage trading while minimizing the hassles they go through to bring this to fruition. MOSDEX is designed to serve minimalist and institutional investors all in one.
MOSDEX incorporates the services of independent protocols, products, and algorithms to deliver a solution like this. These entities work in synergy to deliver an efficient tool for every investor who craves a better way to run cryptocurrency trades.
The MOSDEX facility consists mainly of an Arbitrage trading protocol, a decentralized cryptocurrency exchange powered by the Atomic swap technology, and a custodial wallet that lets users store and move assets between themselves, their peers, and the MOSDEX facility as well.
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