DeFinity Markets, an institutional digital asset ECN, announced it would release crypto market anomaly signals hourly via the new Clarity Absolute App to enhance the current daily offerings and as historical data on Ethereum and Polygon, available on Ocean Market, Coin Journal learned from a press release.
Anomaly detection for 12 major cryptos
Generally, platforms use anomaly detection to identify out-of-distribution behavior in digital asset prices.
Deep learning AI models will generate a new anomaly score (0-100%) every hour for a dozen supported crypto assets (BNB, BTC, AAVE, ADA, DOT, ETH, LTC, XMR, XRP, MATIC, SOL, UNI).
The deep learning models assess a combination of context data, market data, and on-chain data to detect abnormal patterns. These could result from ripple effects from correlated assets, undisclosed new information, or structural breaks in an asset’s behavior.
A powerful risk management tool
This technology has the potential to serve as a failsafe risk management tool because it swiftly detects unobvious market data aberrations and issues early warnings on potential volatility.
A full year of anomaly detection services
Through a partnership with leading European fintech Axyon AI, which boasts in-depth experience in deep learning AI for trading and asset management, DeFinity Markets has been providing crypto market anomaly detection services to customers and token holders for exactly one year now.
The technology is highly effective in terms of generating early warnings and monitoring crypto market data on abnormal liquidity changes, unexpected price behavior, and inconsistent transactions that could indicate broader volatility events.
DeFinity cofounder Manu Choudhary commented:
From the perspective of risk management and trading, our new hourly Anomaly Detector can play a crucial role in giving early warning to portfolio managers of the existence and magnitude of volatility events or directional changes in the 12 major cryptos. This will allow them to either engage in portfolio hedging, reduce their risk positions, or make volatility or directional changes to generate alpha in the options or spot market.
Chris Park, CFO at DeFinity Markets, added:
DeFinity was the first to create and introduce AI-powered anomaly detection in 2021. In less than a year, we improved the accuracy and reliability exponentially and shorted the predictive window to 60 minutes. The technology we created is truly remarkable and groundbreaking.