Hourly crypto market anomaly signals are released by DeFinity Markets (powered by DMALINK), the institutional digital asset ECN for digital assets, to supplement the current daily offering via the new Clarity Absolute App and as datasets accessible on Ocean Market across Ethereum and Polygon networks.
These could be brought on by unreleased new information, the ripple effects of connected assets, or fundamental shifts in how an asset behaves relative to the market at large. This technique is a formidable risk management tool because it can quickly identify these concealed market data anomalies, which would otherwise go undetected, and give an early warning on future volatility events.
To automatically identify out-of-distribution behaviours in asset prices, anomaly detection is typically performed. Deep learning AI models provide a new anomaly score (0-100%) for each of the 12 supported crypto assets hourly, around five minutes after the hour (UTC) (AAVE, ADA, BNB, BTC, DOT, ETH, LTC, MATIC, SOL, UNI, XMR, XRP). To find unusual trends, the deep learning AI models combine market data, context data, and on-chain data.
DeFinity Markets has been giving its customers and token holders access to premium crypto market anomaly detection scores since September 2021 thanks to the embedded collaboration with Axyon AI, a major European FinTech with expertise in Deep Learning AI for asset management and trading enterprises.
Co-founder of DeFinity Manu Choudhary says: “The new hourly Anomaly Detector has the potential to be extremely important from a risk management and trading standpoint by providing portfolio managers with early warning of the presence and magnitude of volatility events or directional changes in the 12 target crypto assets. enabling them to earn alpha in the spot or options market by either reducing their risk holdings, engaging in portfolio hedging, or fading into volatility or directional movements.”
The technique has proven to be exceptionally reliable for tracking cryptocurrency market data and producing early alerts for I unexpected price behaviour, (ii) abnormal liquidity fluctuations, and (iii) inconsistent transactions that might be an indication of larger price volatility occurrences.
“The anomaly detector might provide digital asset stakeholders forewarning of a network assault, regulatory involvement, or seeing a country bail out of assets and forecasting crisis,” said Michael Siwek, co-founder of DeFinity.
Chris Park, CFO at DeFinity Markets, said, “We were the first to develop and introduce AI-powered crypto anomaly detection in 2021, and in less than a year we have managed to exponentially improve the accuracy, reliability, and shorten the predictive window to 60 minutes creating a truly remarkable and ground-breaking technology.
- DeFinity Markets adds historical data to the Ocean Market, which is available on ETH and MATIC, and launches hourly AI-powered crypto anomaly alerts
- Check all news and articles from the latest Business news updates.