Cognitive Memory

The Cognitive Memory Layer forms the foundational intelligence of the DEFAI agent, incorporating both Long-Short Term Memory (LSTM) and Reinforcement Learning (RL). This layer allows the system to:

• Recognize Historical Trade Patterns: By processing vast amounts of market data, the agent identifies recurring trends, making it possible to predict potential outcomes based on previous scenarios.

• Refine Decision-Making Processes: Over time, the system adjusts its trading strategies, learning from both successful and unsuccessful trades. It utilizes reinforcement learning algorithms to continuously optimize decision-making, enhancing the agent's long-term effectiveness.

• Optimize Strategy Selection: Through ongoing interaction with the market, the Cognitive Memory Layer dynamically adjusts strategies to better align with evolving market conditions.