Gmeow, Cats!

We're excited to announce that we've successfully completed our first sprint at Replicats. Here's what we've achieved and a peek into what's coming next.

TLDR on Sprint #1 – Building the Foundation

Sprint #1 was all about establishing Replicats' technological core. We successfully integrated various data sources into the Replicats Intelligence Framework and deployed Replicat-One, our first fully Autonomous Trading Agent.

Replicats Intelligence Framework is our proprietary Framework that uses advanced deep learning, reinforcement learning, specialized foundation models, and sophisticated risk methodologies integrated within a modular DAG-based framework. It combines big data and AI models for superior predictive accuracy, portfolio and risk management, and trading execution.

Replicat-One now operates autonomously on-chain, making data-driven trading decisions without human intervention. It leverages on-chain and market data to optimize its portfolio continuously. Replicat-One is currently in fine-tuning mode, and we plan to open its wallet visibility to users in our next Sprint.

More details on Sprint #1 below.

What's Coming in Sprint #2?

Our next sprint focuses on making Replicats accessible to early supporters and users. Here's what you can look forward to:

• Replicat-One Dashboard in Replicats Terminal: a clean dashboard where our early users can check Replicat-One information, trades, PnL, etc.

• Chat with Replicat-One: When live, users can speak directly with Replicat-One to explore its market forecasts and understand its trading decisions. Imagine speaking with a professional hedge fund manager anytime, anywhere.

• Token-gated Dashboard access, with a freemium mode.

  

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  🛠 Achievements from Sprint #1

We completed Sprint #1 with the successful autonomous launch of Replicat-One based on Replicat's Intelligence Framework.

Replicat-One operates independently from human intervention, using multiple data sources to analyze the market, make decisions, and rebalance its portfolio in real time. We worked extensively on the different stages of the Framework.

We accomplished several key technical milestones:

I. Data Ingestion & Database Module

This is the stage where market data is collected, cleaned, and organized into a central database for the AI Models.

• We built a comprehensive data ingestion pipeline using Airflow to aggregate and clean market data into a centralized data lake.

• Optimized data structures for efficient, real-time integration with the Trading Agent.

• Integrated real-time Pub/Sub updates for swift market reactions.

II. Feature Engineering Module

In this stage, the raw data is transformed into meaningful insights and signals that improve prediction accuracy.

• Developed a robust feature engineering process generating predictive insights from diverse data sources.

• Built frameworks to rank and continuously recalibrate crypto asset predictive features through machine learning and statistical methodologies.

• Implemented a continuous recalibration pipeline to optimize feature selection as new data sources become available.

III. Forecasting & Trading Strategies Module

Advanced AI and foundational models are applied to predict market movements and determine optimal trading strategies in this stage.

• Engineered advanced forecasting models integrating statistical methods (VECM/SVM) and AI (RNN/GNN) models with hyperparameter tuning.

• Implemented multi-frequency strategies (intraday and low-frequency portfolio optimization) to maximize risk-adjusted returns.

• Delivered a highly customizable trading system allowing for future tailored adjustments to strategy parameters and model preferences.

IV. Trading Execution Module

This is the stage where trading decisions from the strategies are automatically executed on the market.

• Automated trading execution through Base on-chain exchange with strategic decisions processed every 5 minutes.

V. Backtesting Module

This is the stage where trading strategies are rigorously tested using historical and simulated data to evaluate performance and risk before being deployed in real market conditions.

• Provided comprehensive backtesting capabilities for evaluating strategies (historical, Monte Carlo, bootstrapping methods).

• Key metrics include performance comparisons against benchmarks such as BTC holding.

• Explore our backtesting framework here: replicats-sample-backtest

VI. Risk Management Module

In this stage, potential risks are assessed and managed using advanced metrics to ensure trades align with the Agent risk tolerance.

• Developed an advanced risk management system utilizing metrics like VaR, CVaR (ES), and MVaR, aligning trading strategies with client risk tolerance.

• Calculations support historical valuation, stressed scenarios, and bootstrapped methods.

VII. Agent Reasoning Module

This is the stage where the trading Agent's decisions are translated into clear, human-friendly explanations and market insights using LLMs so that users can understand what's happening.

• We created a module that provides clear, human-like explanations of trading decisions using LLM and Retrieval-Augmented Generation (RAG) methods, enhancing user understanding of the Agents' decisions.

• This module will continue evolving to integrate deeper market insight into upcoming sprints.

VIII. User Dashboard (Next.js + tRPC)

This is the stage where users will interact with the platform, track trades, ask questions, and manage their Agents.

• We began developing our interactive dashboard, which will be launched in Sprint #2 and feature direct chat interaction with Replicat-One.

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🚀 Looking Ahead

Replicats began in December 2024 with four passionate members and a bold vision: making autonomous trading agents accessible to everyone with only a few clicks. We've now grown, bringing on board dedicated quantitative traders and engineers, driving forward our vision of changing how people relate to their investments.

We're proud of what we've built, and this is just the beginning. In the upcoming days, we'll share the details for Sprint #2 and the release of early access to the Replicats platform.

Stay tuned, and thank you for your support! 🐾

- Replicats Team

DISCLAIMER

Replicats (the "Company") is a software development company that provides technology for creating AI-powered trading agents for cryptocurrency markets. Replicats does not trade on behalf of users, provide investment advice, or manage user funds. Users are solely responsible for their trading decisions and the configuration of their AI agents.

The information contained in this sprint update is for informational purposes only and should not be considered financial advice. Performance metrics are based on historical backtesting and do not represent actual trading results. Past performance is not indicative of future results.

Our upcoming sprint plans represent intended development goals only. Features, timelines, and functionality may change based on technical constraints or other factors outside our control.

Cryptocurrency markets are highly volatile. Users may lose some or all of their invested capital. Only trade with funds you can afford to lose. Users must ensure their trading activities comply with applicable laws and regulations in their jurisdiction.

By using our platform, you acknowledge these risks and limitations.