top of page
Extended AivelX logo, 'AivelX' in Roboto Mono, symbolizing algorithmic trading and probability key level calculation

The Journey of AivelX: A Comprehensive Look at the Development Timeline


AivelX automated quant trading algorithm development timeline

Introduction

AivelX has come a long way since its inception in 2021. Inspired by the teachings of renowned trading educator Mark Douglas, the platform's development has been grounded in the principles of trading psychology and discipline.


In this blog post, we'll delve deep into the journey of AivelX, highlighting key milestones and discussing the platform's powerful, evolving nature.


In a future post, we will explore in greater depth how Mark Douglas's work has influenced the creation and functionality of AivelX.


Year 2021 - The Beginning

Q1 2021 - Initial Concepts and Prototyping

AivelX began as an ambitious project in 2021, with the aim to harness the power of artificial intelligence and machine learning to develop an automated quant trading algorithm that could outperform traditional trading methods while removing the whole human subjective thinking process.


The first step in this journey was to become proficient in using tools like TradingView and coding in Pine Script. AivelX creator NightCommando invested time in mastering these skills, which enabled us to create, test, and optimize various algorithmic strategies with ease. This expertise became invaluable as we continued to refine AivelX's unique system.


Quant trading algorithm AivelX initial prototype aimed at identifying high-probability bottoms in real time in the stock market
AivelX initial prototype aimed at identifying bottoms in the stock market in real time

As visible in the image above, even in its early stages of prototyping, the results were promising despite the simplicity of the parameters initially used, which laid the foundation for the continued development and refinement of the platform.


Through this period of research and experimentation, we laid the groundwork for the unique algorithmic system that would later become AivelX.


Defining Trade Ranges and Establishing a Comprehensive Trading Strategy

During the first quarter of 2021, our initial focus was on understanding and defining what constitutes a trade range. It's essential to clarify that a trade range is not the same as the specific entry and exit prices for a trade.


Instead, once a trade range is identified by the algorithm, AivelX will then analyze the market to determine the key levels that are crucial for the successful outcome of a trade. By comprehensively analyzing historical data and market patterns, we were able to establish a solid foundation for trade range identification, which became a vital element in the development of AivelX.


The trade range concept forms the backbone of AivelX's trading strategy, as it encompasses the invaluable parameters that define a successful trader or investor. By identifying a trade range, the service can assess the risk associated with a trade, the potential gains ahead, the estimated time required for the trade to complete, and the probability of the price continuing in the same direction over time.


We believe that these parameters are invaluable because, despite the wealth of resources available online emphasizing their importance, there is a noticeable lack of services offering a comprehensive approach to trading that incorporates these crucial factors. Many online resources highlight the need to know your risk, have a strategy, establish an exit plan, and know where to take profits. Still, no service provides an objective and comprehensive approach quite like AivelX does.


AivelX's unique approach is designed to address the vital aspects of trading success, offering a valuable tool for traders seeking a comprehensive and data-driven strategy.


Understanding Multiple Time Frame Relationships and Their Impact on Trading Decisions

Another essential aspect of our research during this period involved studying the relationships between multiple time frames. We examined how various time frames interact with one another and how these interactions can influence trading decisions.


A key insight we gained was that the exact same parameter of an indicator can yield totally different results depending on whether higher time frames are moving in the same direction or not.


This is because higher time frames carry more weight in determining the outcome of a trade, often dictating the underlying market trend.


By recognizing the significance of these relationships and their impact on trading decisions, we were able to incorporate this knowledge into our algorithm, allowing AivelX to better adapt to changing market conditions and align its strategies with the dominant trends across multiple time frames.


Q2 2021 - Developing the Metrics Array

By the second quarter of 2021, the focus shifted to developing the core metrics array that would power the platform. The goal was to create a system that could limit the thinking process required for each play, allowing users to rely on the data-driven insights provided by the platform instead of attempting to analyze the vast amount of data themselves.


This approach was essential not only for minimizing emotions and human bias but also for maximizing efficiency in trading.


The human brain has its limitations when it comes to processing complex data, especially when compared to the sophisticated algorithms employed by large firms that drive the market. These algorithms analyze billions of data points, making it impossible for individual traders to compete without a similar tool at their disposal.


With this in mind, AivelX's array of metrics was designed to analyze each trading day as a complex system, with countless data points being processed by the machine learning algorithms. This approach enables users to leverage the platform's powerful capabilities to make informed trading decisions without the limitations and biases inherent in human decision-making.


Q3-Q4 2021 - Customizable Indicators and Automatic Optimization

A major breakthrough came in the third quarter of 2021, when we developed a system that allowed us to add any indicator to the algorithm. The platform would then automatically optimize the indicator to fit within the existing trading strategy. This milestone demonstrated the platform's adaptability and potential to evolve alongside users' needs.


During this period, we also focused on ensuring the scalability and upgradability of the service. AivelX was designed from the ground up to incorporate new features easily and analyze additional types of trades without the need for new strategies.


This development is particularly significant because it challenges the common thought process found online regarding indicator selection. Typically, traders are advised to choose an indicator or a set of indicators, backtest them to see how they performed in the past, and only then decide to build a strategy using these indicators. The limitation of this approach is that these very same indicators could lead to substantial losses if the market goes through phases in which the indicator or set of indicators doesn't perform well.


On the other hand, building a strategy first and only then analyzing the parameters of different indicators can provide a completely different approach to viewing the data presented by each indicator.


This method helps reduce noise by ignoring metrics that are not relevant and focusing only on the metrics that are crucial to the strategy. AivelX's innovative approach enables traders to optimize their strategies by incorporating relevant indicators in a more efficient and targeted manner.


2022 - The Evolution

Q1 2022 - Continued Development and Refinement

Throughout 2022, we continued to refine and upgrade the platform, with a focus on ensuring that the algorithms remained up-to-date with the latest advancements in AI and machine learning. During this time, we also added more time frames to gain a better understanding of the whole spectrum of the market, further enhancing our ability to make informed trading decisions.


The development process was rigorous, but we remained committed to delivering a product that could provide immediate results for traders while still being adaptable and upgradable. By staying up-to-date with the latest advancements and incorporating a wider range of time frames, AivelX is better equipped to tackle the dynamic nature of the trading landscape.


Q2-Q4 2022 - Preparing for Public Release

As AivelX approached the end of its beta phase, we faced a crucial decision: whether to go public or remain private. Ultimately, we chose to go public, driven by the belief that communities will play a significant role in shaping global trading systems in the future. The rapid rise of social trading platforms and the increasing influence of online trading communities, such as those on Reddit and Twitter, are testaments to the power of collective knowledge and collaboration in the world of trading.


We recognize that to remain competitive in the evolving landscape of trading algorithms, it is essential for a platform to continuously adapt and grow. By going public, we aim to harness the collective intelligence and diverse perspectives of our user base, which will enable AivelX to keep up with market trends, innovate, and improve over time.


This decision will help us tap into the potential of crowd-sourced trading strategies, which have been shown to outperform those developed by individual experts or firms in some studies.


By opening up AivelX to a broader audience, we hope to tap into this potential and build a stronger, more resilient and future-proof quant trading algorithm.


In summary, our decision to go public reflects our long-term vision for AivelX as a community-driven platform that embraces change, fosters innovation, and strives for continuous improvement in the ever-changing world of algorithmic trading.


2023 - A New Chapter

Q1 2023 - Public Launch

In February 2023, AivelX officially went out of beta and we started to share the calculations and estimates powered by the velX-1 Engine on Twitter and StockTwits.


This marked the beginning of a new chapter for the algorithm, as it transitioned from a development-focused project to a fully functioning product.


Q2 2023 - velX-2 release

The velX-2 Engine was officially released at the start of Q2 with the inclusion of 2023 Q1 reference trades and increased functionalities for all NYSE and Nasdaq stocks with prices higher than $3, market cap higher than $1 billion and a 5-year history since their IPO.


The Future of AivelX

As AivelX evolves along with the community, users can expect to reap the benefits of a constantly improving service.


To ensure continued growth and innovation, we have a list of features under development and under consideration for the future development of AivelX.


Q3 2023

velX-3 Engine (currently under development) - Inclusion of Q2 reference trades and introduction of intraday time frames: This will provide users with more granular insights and enable them to make more informed decisions based on intraday market fluctuations.


Q4 2023

  1. velX-4 Engine - Inclusion of Q3 reference trades and full-system upgrade including all NYSE and Nasdaq stocks with prices ranging from $1 to $2.99.

  2. New indicators inclusion to help remove noise, identify key levels, and assess their probabilities, further enhancing the platform's capabilities.

  3. Discord chatbot release: The chatbot is aimed at providing instant insights for any ticker requested by the users, in order to facilitate seamless communication and sharing of information within the AivelX community.


2024 Priorities

  1. Develop and release a proprietary Stock Screener: Rather than subjectively pick tickers to watch or trade, the AivelX Stock Screener will be aimed at filtering and sorting tickers also by proprietary AivelX parameters like AI Score, estimated gains and progress.

  2. Develop and release TradingView alerts: These alerts will notify users of potential trading opportunities and key market events, enabling them to take action promptly.

  3. Release educational materials: We will develop resources to help users make the most out of the AivelX service, ensuring they can fully leverage the platform's capabilities.


By incorporating these features and focusing on user-driven innovation, AivelX will continue to strive to stay ahead of the curve, providing a powerful and constantly evolving trading platform for its growing community.


Protection of Intellectual Property

Before concluding this blog post, we would like to add a note about the various measures that were undertaken and will keep being taken in order to ensure the security of intellectual property while still providing users with valuable insights.


Up until going public, access to the forecasts identified and presented by the algorithm was restricted to a select group of approved individuals, ensuring that sensitive information remained secure. The code itself has never been shared with anyone nor made public on TradingView, which further safeguards the proprietary aspects of the algorithm. Additionally, all machine learning results have been kept confidential, preventing potential misuse or replication of the algorithm.


By implementing these measures, AivelX can maintain the integrity of its intellectual property while continuing to offer powerful, objective and reliable trading insights to its users.


Conclusion

AivelX represents a sophisticated, professional, and invaluable trading algorithm that has evolved significantly since its inception in 2021.


By leveraging the power of AI, machine learning, and a complex array of metrics, AivelX aims at playing an important role in the world of algorithmic trading.


As we look forward to the future, AivelX remains dedicated to constant innovation and development.


The upcoming blog post will provide more information about the Exclusive AivelX Community, including details on the free area and various subscription options that will help us working and sharing our passion throughout the years to come.




Comments


Commenting has been turned off.
bottom of page