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Project Description

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Ali Husnain
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0% found this document useful (0 votes)
33 views3 pages

Project Description

Uploaded by

Ali Husnain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Project Description: Analysis and Optimization of XAUUSD Trading

Indicator with AI
Project Objective:

The objective of this project is to develop an AI model that can analyze and optimize the
reliability of signals generated by my custom-built indicator. This indicator is based on a strategy
that generates signals when potential profitable entry points arise in the XAUUSD market.
Despite the generated signals, traders are still required to manually validate each signal. The
aim of this project is to leverage AI to identify which signals are the most reliable based on
historical performance over the past years, allowing traders to make more informed decisions.

Additionally, the AI must provide a real-time probability (success rate) for each signal,
expressed as a percentage, based on both historical data and current market conditions.

Project Specifications:

1 Data Input:

- Access to historical XAUUSD data, preferably from the year 2000 to the present, unless
the developer suggests a more appropriate and representative time frame.
- The historical XAUUSD data combined with the custom-built indicator’s signals.

2 AI Analysis:

- Develop and train an AI model (e.g., machine learning model) to analyze the reliability of
the signals based on historical data.
- The model should learn from the historical performance of the signals to identify which
market conditions (e.g., volatility, price patterns, volume) make a signal more reliable.
- The AI should classify signals based on their likelihood of success (e.g., low, medium,
high) and assign a percentage to each signal, indicating the probability of success. For
example: “This signal has a 70% chance of success.”
- The model should factor in various market dynamics such as trend direction, volatility,
and economic events.
- Real-time functionality: The AI should be capable of generating a real-time estimated
success rate (in percentages) for each signal based on both current market conditions
and historical patterns.
3 Output and Reporting:

- A detailed report summarizing the indicator’s performance, specifying which signals


were the most successful under different market conditions.
- Visual representations of the indicator’s performance in historical contexts, such as
charts showing profit/loss based on the generated signals.
- In real-time: The AI must provide an estimated success rate for each signal, allowing the
trader to immediately assess the reliability of the signal (e.g., 70%, 85%, etc.).

4 Real-time Integration:

- The AI must be integrated into a trading platform (e.g., TradingView), so that the model
can evaluate the indicator’s signals in real-time and assign a success rate as a percentage
to each signal.
- The trader should be able to view this success rate instantly when a signal is triggered,
helping them make faster and more informed trading decisions.

5 Testing and Validation Phase:

- The model must be tested on a separate portion of the historical data that was not used
for training the AI model. The accuracy and effectiveness of the predictions should be
evaluated on this “unseen” data.
- The real-time system should also be tested to ensure that it performs accurately in a live
trading environment and that the model is fast enough to generate real-time success
rates.

Expected Deliverables:

- A well-trained and validated AI model capable of analyzing historical XAUUSD data to


determine which indicator signals are the most reliable for profitable trades.
- A comprehensive report with insights and analysis on the reliability of the signals.
- Real-time functionality: A working integration of the AI into a trading platform that
provides a success rate as a percentage for each signal, indicating the likelihood that the
signal will be profitable.

Requirements:

- Language and software: The model must be developed using a commonly used
programming language such as Python, leveraging machine learning libraries like scikit-
learn, TensorFlow, or PyTorch. Data analysis should be performed using libraries such as
Pandas.
- Real-time integration: Integration of the model into a suitable trading platform that can
analyze signals in real-time and display a success percentage for each signal.
- Communication: Regular updates on the progress, including test results, with the
possibility to make adjustments based on feedback.
- Data usage: Historical data should go back to the year 2000, unless the developer has a
better recommendation for an optimal dataset based on representativeness and
availability.

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