Hermes · Ollama · RAG
AI that remembers — not amnesia on every tick
Cryptrade uses local AI (Ollama, crypto-expert-hermes) together with two
persistent stores: a session tape of everything that happened, and a searchable knowledge
base that grows automatically from live market conditions.
The knowledge loop runs continuously — not only when you ask a question.
Two kinds of memory
Session memory (bot-memory.jsonl)
A chronological tape of the current market session:
- Price ticks and volatility scores
- BUY / SELL / HOLD signals — executed or skipped
- Intel snapshots, news hits, external RSI
- AI assessments and trade outcomes
- Event playbook activations
memoryBrief — the last ~24 hours compressed into text injected into every AI call.
Knowledge store (market-knowledge.jsonl)
Durable facts organized by category and tags:
- Market regime (risk-on / risk-off patterns)
- Scenarios (when to accumulate stables into ETH)
- Exchange context (CEX vs DEX divergence rules)
- News chunks from verified financial sources
knowledgeBrief — relevant chunks retrieved at decision time via RAG search.
The automatic RAG loop — five steps
1
Collect
Every few minutes, collectors write fresh snapshots into the knowledge store: intel composite, macro leadership, verified news headlines, wallet state, orderbook summary, whale bias.
2
Retrieve
When the AI advisor evaluates a signal, it searches active knowledge chunks tagged for the chain, asset, and focus (e.g. accumulation). Top matches form the knowledgeBrief.
3
Reason
Hermes reads memoryBrief + knowledgeBrief + live quote context. It returns structured bias, confidence, risk flags, and invalidation levels — stored back into session memory.
4
Digest (hourly)
digestMarketKnowledge asks Hermes: “Given everything right now, what 1–3 new facts should we remember?” Valid JSON facts upsert into RAG with TTL and confidence scores.
5
Learn from outcomes
Signal outcome tracker evaluates counterfactuals — did skipped BUY signals later look like missed opportunities? Learning briefs feed back into knowledge collection.
How knowledge drives trades
The five-step RAG loop above feeds directly into buy/sell gates. For the full decision path —
retrieval scoring, Hermes assessment, gate logic, and outcome feedback — see the dedicated slide.
RAG learning & trade decisions →
What AI does — and does not do
AI is used for
- Desk commentary and intel summaries (factual templates when AI off)
- Optional buy/sell gate when
AI_GATE_BUY enabled
- Hourly knowledge distillation into RAG
- US session narrative summaries
AI is not used for
- Random trade entries without strategy signal
- Cloud LLM calls on every websocket tick (runs local Ollama)
- Fabricated “we are buying now” desk lines without tx hash
Live automatic mode
With AI gates disabled, Hermes still enriches desk and knowledge — but EMA dip strategy executes without waiting for LLM approval each time.
Privacy & control
Models run on your machine via Ollama. Session memory and knowledge files stay on disk under
data/. You control retention, digest frequency, and whether AI can block trades.