AI TradingStrategy Tiers

Strategy Tiers

Overview

Users choose one of three strategy tiers when creating an AI Trading Vault. Each tier has different risk parameters, trading frequency, and performance fee rates. All tiers trade the same markets (BTC, ETH, SOL, DOGE, XRP, BNB) but with different position sizing and leverage limits.

Tier Comparison

ParameterCapital GuardGrowthHigh Octane
Risk LevelLowMediumHigh
Target Return1-3% / month3-8% / month8-15%+ / month
Max Leverage3x5x10x
Max Position Size20% of equity40% of equity60% of equity
Max Drawdown (auto-pause)10%15%25%
Daily Loss Limit2%5%10%
Trading Frequency~10 trades / day~30 trades / day~100 trades / day
Min Deposit50 USDC100 USDC250 USDC
Performance Fee12% of profits15% of profits18% of profits

Capital Guard (Low Risk)

Capital preservation with steady returns. Best for large deposits and risk-averse users.

Behavior by Market Regime:

RegimeStrategy
Trending UpDCA long with trailing stop
Trending DownDCA short bias with tight stop
RangingTight grid (5 levels)
VolatileCash — no trading
BreakoutWait for confirmation before entry

Growth (Medium Risk)

Growth-focused with active risk management. The default recommendation for most users.

Behavior by Market Regime:

RegimeStrategy
Trending UpMomentum (MA crossover) with trailing stop
Trending DownMomentum short with hedging
RangingGrid + mean reversion
VolatileSmall mean reversion positions
BreakoutMomentum entry on confirmation

High Octane (High Risk)

Maximum returns with higher drawdown tolerance. For experienced traders who understand leverage risk.

Behavior by Market Regime:

RegimeStrategy
Trending UpLeveraged momentum with pyramiding
Trending DownLeveraged short with scale-in
RangingWide grid (15 levels) + mean reversion
VolatileMean reversion with quick scalps
BreakoutEarly aggressive entry

AI Technology Stack

Five-Layer Architecture

Layer 1 — Data Pipeline (every 30 seconds)

Aggregates data from five sources into a unified structured JSON payload:

  • Market data: OHLCV candles (1m to 1d), tick trades, funding rates, open interest
  • Orderbook microstructure: bid/ask spread, order imbalance ratio, whale wall detection (>$100K)
  • News and sentiment: crypto news feeds, Twitter/X sentiment, Fear and Greed Index, macro calendar
  • On-chain data: funding rates (8h settlement), OI changes, liquidation cascades, whale wallet movements
  • Cross-market signals: BTC dominance, ETH/BTC ratio, DXY correlation, S&P 500 futures

Layer 2 — Quant Engine (Deterministic, Rust)

Computes technical indicators and classifies market regimes:

  • Indicators: SMA(9,21,50,200), EMA(12,26), RSI(14), MACD(12,26,9), Bollinger Bands(20,2), ATR(14), ADX(14), OBV, VWAP
  • Regime detection:
    • Trending: ADX > 25 + clear SMA slope
    • Ranging: ADX < 20, narrow BB width
    • Volatile: High ATR%, low ADX
    • Breakout: BB squeeze + volume > 2x average

Layer 3 — LLM Brain (every 2-3 minutes)

The LLM receives structured data from Layers 1-2 plus current vault state. It returns trade actions with confidence scores and reasoning annotations. If confidence < 0.3, the AI holds and logs its reasoning.

Layer 4 — Risk Validator (Deterministic, Rust)

Every LLM output passes through a hard-coded Rust risk validator before execution:

  • Leverage within tier maximum
  • Position size within equity percentage limit
  • Stop-loss present and reasonable (ATR-based)
  • Daily loss budget not exceeded
  • Drawdown threshold not breached

If any rule is violated, the trade is rejected. This layer cannot be bypassed by the LLM.

Layer 5 — Smart Router

Routes validated orders to the GXCore matching engine for native execution with industry-leading throughput and near-instant finality.

Performance Fee Calculation

Performance fees are calculated using a high-water mark (HWM) model:

  1. HWM is set at the initial deposit value
  2. Fees are only charged on profits above the HWM
  3. If the vault loses money and recovers, no fee is charged until the previous HWM is exceeded
  4. Fees are deducted at withdrawal or at the end of each calendar month

Example (Growth tier, 15% performance fee):

  • Deposit: 10,000 USDC
  • Month 1 profit: +800 USDC. Fee: 800 * 15% = 120 USDC
  • Month 2 loss: -300 USDC. Fee: 0 USDC. New HWM: 10,800 USDC
  • Month 3 profit: +500 USDC (vault at 11,000). Fee on amount above HWM: 200 * 15% = 30 USDC