Discussing the article: "Analyzing binary code of prices on the exchange (Part II): Converting to BIP39 and writing GPT model"

 

Check out the new article: Analyzing binary code of prices on the exchange (Part II): Converting to BIP39 and writing GPT model.

Continuing tries to decipher price movements... What about linguistic analysis of the "market dictionary" that we get by converting the binary price code to BIP39? In this article, we will delve into an innovative approach to exchange data analysis and consider how modern natural language processing techniques can be applied to the market language.

Imagine for a minute: what if the market could speak to us in words? Not metaphorically, through charts and indicators, but literally — using human language? It is this idea that we develop in the second part of our study, using BIP39 protocol, the one that is used in cryptocurrency wallets to create mnemonic phrases.

Why choose BIP39? This protocol was created to turn random sequences of bits into memorable English words. In cryptocurrencies, it is used to create seed phrases, but we saw something more in it - an opportunity to turn the "digital whispers" of the market into meaningful sentences.

But simply translating binary code into words is not enough. We need an "artificial intelligence" capable of understanding these words and finding hidden patterns in them. Here, a transformer architecture similar to the one used in GPT comes to the rescue. Imagine it as an artificial brain that reads the "book of the market" written in the BIP39 language and learns to understand its deeper meaning.

In a sense, we are not just creating another technical indicator - we are developing a real translator from the language of the market to that of the human and vice versa. This translator not only mechanically converts numbers into words, but also tries to capture the very essence of market movements, their internal logic and hidden patterns.


Author: Yevgeniy Koshtenko

 
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