The Neural Engine

Monika's decision-making process is driven by a hybrid "Brain & Hands" architecture designed to minimize latency while maximizing security.

The Brain (Pattern Recognition)

Running on a dedicated cloud container, the Neural Engine continuously processes market data for key assets (MON, BTC, ETH) using a multi-layered scoring system.

1. The AI Confidence Score Calculation

Monika does not rely on a single indicator. Instead, she generates a composite Confidence Score (0-100) based on a weighted algorithm:

$$\text{Score} = (W_{knn} \cdot C_{fractal}) + (W_{tech} \cdot S_{technical}) + (W_{macro} \cdot M_{trend})$$

• Fractal Matching (60% Weight): The K-Nearest Neighbors (KNN) algorithm compares the current 1-hour candle structure against 10,000 historical scenarios. If 80% of similar historical patterns resulted in a pump, the raw fractal score is 80.

• RSI Momentum (20% Weight):

  • Bullish: RSI > 50 and rising (Adds points).

  • Overbought Penalty: RSI > 75 (Subtracts points to prevent buying tops).

• Macro Trend (20% Weight): Checks the D1 (Daily) timeframe for major support/resistance validity.

2. Golden Cross Detection (The "Alpha" Signal)

Monika includes a dedicated Golden Cross detector acting as a "Super-Signal."

• Definition: When the 50-period Simple Moving Average (SMA) crosses above the 200-period SMA on the H4 or D1 timeframe.

• System Response:

  1. Override: A confirmed Golden Cross automatically sets the "Macro Trend" score to maximum.

  2. Aggression Mode: The engine reduces the RSI cooldown period, allowing for more aggressive entries during the confirmed uptrend.

  3. Visualizer: The terminal's "Market Structure" panel lights up GOLD to indicate this rare, high-probability event.

3. The Trend Shield (Risk Management)

To prevent counter-trend trading during crashes, a dynamic filter is applied before any score is finalized:

• Bearish Shield: If Price < EMA 200 (Exponential Moving Average) on the 4H chart, all "BUY" scores are dampened by 50%.

• Volatility Guard: If Bollinger Band width expands > 300% in 1 hour (flash crash event), trading is paused until volatility normalizes.

The Hands (Execution Layer)

Once the Brain generates a signal (Score > 75), the Smart Routing Engine takes over:

1. Polls Monad RPCs to check gas costs and slippage.

2. Calculates Optimal Path: Checks liquidity depth across PancakeSwap V3 and Uniswap V3.

3. Auto-Routing: If direct MON/USDC liquidity is low, it automatically constructs a multi-hop route (e.g., MON -> WETH -> USDC).