Retrieval · Reasoning · Execution

RAG learning — from market facts to trade decisions

Cryptrade does not treat each price tick in isolation. A Retrieval-Augmented Generation (RAG) knowledge base grows automatically from live feeds, Hermes AI digests, and trade outcomes — then the best-matching facts are injected into every strategy and gate evaluation before a swap is signed.

Diagram: collectors write facts to knowledge store, RAG retrieves relevant chunks, Hermes reasons, gates approve or block trades

Knowledge flows in continuously; decisions pull the most relevant facts out at runtime.

Two memory layers — one decision

Session tape (memoryBrief)

Chronological log of this session: ticks, signals, skips, fills, AI verdicts, news hits.

  • Answers: What just happened in the last 24 hours?
  • Built from data/bot-memory.jsonl
  • Compressed before each Hermes call

Knowledge store (knowledgeBrief)

Durable, tagged facts with confidence scores and TTL — the RAG corpus.

  • Answers: What should we remember about this market regime?
  • Built from data/market-knowledge.jsonl
  • Ranked and retrieved at decision time

At every AI evaluation, Hermes receives both briefs plus live quote, EMA, order book, macro, and intel context. The strategy math fires first; RAG shapes whether gates pass and how confident the AI is.

What the system learns — all knowledge sources

Every ~5 minutes collectors upsert fresh chunks. Hourly digest adds Hermes-distilled facts. Outcomes close the loop.

Source What gets written TTL (typical) Role in trades
seed Baseline rules: wallet hygiene, accumulation scenarios, exchange references Permanent Always-retrieved guardrails
intel_feed Fear & Greed, funding rates, spot references, composite intel score 12–72 h Regime context; adjusts AI confidence discount
macro_feed Crypto vs metals leadership, risk-on / risk-off regime 48 h Macro gate + bearish accumulation caution
orderbook_feed Binance L2 imbalance, spread, mid prices 6 h Order book gate; CEX vs DEX sanity
wallet Sanitized live wallet: USDC balance, gas, active chain 24 h Size and readiness checks
whale_feed Large transfer bias summary 24 h Whale gate on BUY/SELL
news_feed Verified headlines (BBC, CNBC, WSJ, Bloomberg, FT, Fed, SEC) 48 h Event playbooks; desk intel
ai_learning Win rate, blocked signals, correlated AI vs outcome patterns 168 h Teaches Hermes what blocks saved capital
hermes_digest 1–3 new facts distilled hourly from session + feeds 72 h Durable learned cautions and scenarios
hermes_gate Snapshot of each AI assessment at gate time 48 h Audit trail; future RAG retrieval

How RAG retrieval ranks facts

When a BUY or SELL signal arrives, retrieveKnowledgeChunks scores every active chunk and builds knowledgeBrief.

Tag & asset match

+25 for chain tag (e.g. ethereum). +18 per matching asset (eth, weth, usdc). Focus accumulation boosts scenario and pattern categories.

Recency boost

Market regime and pattern chunks written in the last 6 hours get up to +22. Stale intel naturally fades as TTL expires.

Must-have guardrails

Security and core accumulation scenarios are always included in the brief — even if they would not top the score alone.

Confidence weighting

Each chunk carries a 0–100 confidence score. Seed facts and wallet snapshots rank high; Hermes digest facts start at ~70 until reinforced by outcomes.

From signal to swap — where knowledge decides

Uniswap tick EMA / dip strategy BUY or SELL signal RAG + memory brief Hermes assessment Gates Execute or skip
1

Strategy fires (quant first)

Price websocket triggers EMA dip logic, take-profit, or stop-loss. No AI required for the initial signal — math defines when to consider a trade.

2

RAG brief assembled

knowledgeBriefForContext retrieves top chunks for chain, pair (WETH/USDC), and accumulation focus. Session memoryBrief adds recent skips, fills, and AI history.

3

Hermes evaluates

AiAdvisor.getIntelligence sends briefs + live context to Ollama. Returns bias, confidence, action_hint, risk flags, and invalidation — logged to session memory.

4

Gates apply knowledge

When AI_GATE_BUY / AI_GATE_SELL are on, Hermes must approve. CEX, macro, order book, and whale gates also consult live feeds already mirrored in RAG. Failed gate → skip with desk commentary.

5

Outcome feeds back

Executed trades and skipped signals get correlated by signal ID. Win rates and “AI blocked N signals” patterns upsert into ai_learning chunks — retrieved on the next decision.

Example: a BUY signal with RAG in the loop

Retrieved knowledge might say…

  • Extreme fear 12 — contrarian accumulation context (intel_feed)
  • ETH funding negative — shorts pay longs; cautious long bias (intel_feed)
  • Macro risk_off — crypto lagging metals; macro gate may block (macro_feed)
  • AI blocked 3 signals — recent CEX gate pattern (ai_learning)
  • Hermes digest: wait for momentum confirmation (hermes_digest)

Hermes might conclude…

  • bias: neutral or bearish despite dip
  • confidence: below AI_MIN_CONFIDENCE
  • action_hint: hold / wait
  • Result: skip BUY — logged with reason; desk shows gate block

With AI gates off, RAG still enriches desk and hourly digest — strategy may execute if other gates pass.

The learning cycle (continuous)

Collect — every ~5 min

refreshKnowledgeBase runs collectors: wallet, intel, macro, orderbook, whale, news, memory learning. Fresh snapshots replace expired TTL chunks.

Digest — hourly

digestMarketKnowledge asks Hermes for 1–3 new JSON facts given current memory + RAG. Upserts as hermes_digest with 72 h TTL.

Retrieve — every signal

Ranked chunks compress into knowledgeBrief (~1800 chars). Injected into getIntelligence alongside macro and intel briefs.

Learn — after outcomes

SignalOutcomeTracker links AI verdicts to PnL. collectFromMemoryLearning writes pattern chunks so future trades benefit from closed-loop feedback.

Configuration knobs

Env variableDefaultEffect
KNOWLEDGE_ENABLEDtrueMaster switch for RAG store
KNOWLEDGE_COLLECT_SEC300How often collectors refresh feeds
KNOWLEDGE_DIGEST_SEC3600Hermes hourly fact distillation
KNOWLEDGE_BRIEF_MAX_CHARS1800Max RAG text injected per decision
AI_GATE_BUY / AI_GATE_SELLconfigurableRequire Hermes approval before swap
AI_MIN_CONFIDENCEMinimum % for BUY approval (adjusted by intel)

Monitor live facts locally: npm run rag:monitor:open

Related slides

AI & memory

Session tape vs knowledge store, privacy, and what AI does not control.

Live trading

Execution, safety checks, and on-chain audit trail.

Market desk

See signals, intel, and gate blocks in real time.