CIPHER is currently in beta · Live testing in progress · Expect changes

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How It Works

CIPHER runs the same four-step loop for each trading pair on every hourly candle close. Here's exactly what happens.

01

Market Data Ingestion

Every hour, CIPHER pulls 5,000 candles for each of the four pairs directly from Binance in batches of 1,000. That gives it a rolling 208-day (7-month) view of price, volume, and market structure to work from. Data is split chronologically: 70% for training, 15% for validation, and 15% for testing — the model never sees the validation or test data during training.

02

Technical Analysis

CIPHER computes 14 technical features per candle — RSI, MACD, Bollinger Bands, multiple EMAs, volume momentum, and candle body patterns. Features are normalised using a scaler fitted only on training data to prevent data leakage, then fed into the LSTM encoder (which validates with an internal 80/20 split and early stopping) to build a 128-dimensional picture of current market conditions.

03

Knowledge Retrieval

Before every decision, CIPHER searches its 3,072-insight knowledge base — sourced from institutional trading books and research — for passages that match current conditions. Relevant matches raise signal confidence. This is what separates CIPHER from a plain indicator bot.

04

AI Decision

The AI agent — trained across thousands of simulated trading sessions — takes the technical features, market context, and knowledge score and outputs one of four actions: Buy, Hold, Sell/Short, or Close Short. The decision executes immediately.

Signal Confidence

Not every signal is equal. CIPHER scores each decision based on how strongly the knowledge base backs current market conditions. High-confidence signals get larger position sizes. Low-confidence signals default to Hold — CIPHER won't force a trade just to be active.

Risk Controls

Five safeguards fire automatically on every trade:

  • Take profit (+5%) — automatically closes a position when unrealised profit hits 5%, locking in gains.
  • Stop loss (-2.5%) — automatically closes when unrealised loss hits 2.5%, capping downside.
  • Loss-cutting pressure — if an open position moves more than 2% against CIPHER, it starts applying escalating internal pressure to exit rather than sit and hope.
  • Overtrading prevention — 3-candle cooldown between trades, 15 trades per episode cap, and penalty for more than 2 trades in any 10-candle window.
  • Fee awareness — every decision accounts for the 0.1% entry and exit fee. If expected profit doesn't clear transaction costs, CIPHER doesn't trade.