Everything You Need to Know About Precog Finance’s Sentient
In Precog Finance’s greater ecosystem, Sentient perhaps stands out a little further above the rest — and rightfully so. From its unique design to its promising potential, teasing the product and its various features has opened up the appetites of many for a greater understanding of the algorithm — and teased it we most certainly have.
Thus we have decided to sate that appetite by expanding further on the product with a dedicated article. Although the final product still awaits its launch, and some of the details have yet to be finalized, we can nevertheless dive into the fundamentals of Sentient to set the stage for its release.
What is Sentient?
Sentient is an AI-assisted DeFi trading algorithm that conducts various low-risk arbitrage trades. By being connected to several centralized and decentralized exchanges, Sentient can automate the arbitrage between current crypto pairs and their futures across various markets and ecosystems, and take advantage of their price inefficiencies.
Within the core of our AI-assisted trading engine one of the strategies it currently leverages is a variant of the traditional “Cash and Carry” arbitrage investment strategy; and it is also designed to support various other strategies as the algorithm grows, adapts and evolves. In a traditional arbitrage trading scenario, Cash and Carry is a strategy that targets market pricing discrepancies by taking a combination of long and short (as well as futures and options) positions.
Sentient evaluates the spot and “carrying cost” of a cryptocurrency, and then compares the cost against a future value premium. If the futures value premium is greater than the spot carrying cost, then it executes and acquires the forward sell, locking in the value difference between the spot and future price, and thus, making a profit.
AI and Research-Driven
Behind Sentient is a team of professionals from various interrelated fields; this includes but is not limited to trading, statistics, mathematics, algorithm and programming experts, all of whom closely observe and study the program from different angles to ensure the best possible performance.
But perhaps the main attraction of Sentient is its machine-learning capabilities, a powerful tool that has consistently helped computers blow their human competitors out of the water. If chess grandmasters and Esports world champions share one thing in common, it’s that they’ve both been beaten by machine learning AI.
Machine learning AI imitates the way that humans learn, and improves according to certain criteria — the sheer speed and scale of which is impossible for the human mind to truly fathom. This allows the algorithm to take giant leaps in learning, and improve at a pace no human can match.
This not only means that Sentient doesn’t necessarily rely on human upgrades, but that it also improves itself by learning from past trades in real time! These improvements may include anything from minor adjustments that need to happen on a too-frequent-basis for a human developer to keep up with, to details and implications that the human eye and mind cannot always spot.
Benefits of Using Sentient
Saves Time: Performing the same strategy as Sentient manually would take more time and effort, and requires a certain level of expertise to pull off properly. Sentient performs these actions at lightning-speeds, and delivers results at the soonest possible instant.
Trades Overnight: The algorithm can run 24/7, earning traders money when they’re asleep, at work, away, or simply focused on something else.
Beginner Friendly: Even beginners can easily use Sentient thanks to its user-friendly UI, and all that is essentially required to get the algorithm to start working is 1) deposit the amount that they wish to utilize for trading and 2) realize the profits and withdraw them if they want to.
Worry-Free Experience: Day trading is a stressful process and is statistically an unprofitable affair. Sentient takes that stress away by trading for you.
Self-Improving: Not only is Sentient’s machine-learning AI a powerful tool that allows it self-improve, but it also allows it to improve on its own — essentially guaranteeing constant upgrades.
Sentient — A Summary
Sentient is a sophisticated trading algorithm — the first of its kind in DeFi, as well as in the overall blockchain-cryptocurrency landscape. This is because it leverages artificial intelligence (AI) and machine learning to optimize returns for arbitrage trading. The concept here is to deploy a smart contract that targets arbitrage opportunities on the user’s behalf, moving funds around in real-time to ensure maximum profits with minimal theoretical risks.
Well-equipped on all fronts, Sentient is no mere trading algorithm, but also a work of art that displays the power of machine learning AI successfully undertaking one of traders’ greatest challenges — the crypto market.
If you’d like to see test results of Sentient in action, you can find more of Precog Finance in the links below, where we will be sharing this data in the near future!
Frequently Asked Questions About Sentient
Q: Is Precog Finance or Sentient the trading algorithm?
A: Sentient is part of the Precog Finance ecosystem that includes other products like Cerebral.
Q: What is the difference between Sentient and Cerebral?
A: Sentient is the DeFi trading algorithm whereas Cerebral is the decentralized futures and options marketplace.
Q: Does the machine-learning algorithm take into consideration external influences?
A: To a certain extent yes, and the number of such influences will increase as the algorithm further develops.
Q: Will I be able to use the PCOG token for Sentient?
A: Yes, the PCOG token can be staked to increase the earned yield on investments.
Got any more questions? Check out our resources or drop by in our communities to ask us directly!