AI Trade Prediction Model Segmentation and Feedback

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Solution Overview

Problem

Existing AI models for predicting trade outcomes face challenges such as overfitting, underfitting, and bias due to inadequate training data, especially when dealing with unstructured data like news and blogs, leading to erroneous trade decisions and a lack of explainability in recommendations.

Innovation Solution

A method and system that receive and process structured and unstructured data signals from multiple sources, using pre-configured algorithms, statistical analysis, or AI-based techniques to identify patterns and determine event occurrences within a predefined time frame, enabling more accurate and explainable trade recommendations.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If AI models are trained on large exemplary data sets to improve prediction accuracy, then the model's ability to predict expected outcomes improves, but the complexity of training and data requirements increase significantly

Engineering Contradiction:
Improveprediction accuracyVSAvoidtraining complexity
Core Design Contradiction:
Measurement precisionVSDevice complexity

Solution Approach 1:

The patent segments the training process into multiple stages: initial training on large data sets to learn general patterns, followed by fine-tuning on smaller domain-specific data sets. This segmentation reduces overall training complexity while maintaining prediction accuracy by breaking down the monolithic training process into manageable phases with different data requirements.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent applies preliminary action by pre-training the AI model on large exemplary data sets before deployment. This pre-training establishes a strong foundation of general knowledge and patterns, allowing the model to achieve high prediction accuracy without requiring large data sets for every subsequent training task. The preliminary training action reduces the burden of future training operations.

Inventive Principle:
Principle #10Preliminary action

2Productivity

If AI models are trained on inadequate or biased data, then training time and resources are reduced, but the model generates erroneous trade outcomes due to overfitting, underfitting, or bias

Engineering Contradiction:
Improvetraining efficiencyVSAvoidtrade outcome accuracy
Core Design Contradiction:
ProductivityVSReliability

Solution Approach 1:

The patent implements feedback mechanisms where the AI model's predictions are continuously evaluated against actual trade outcomes. This feedback loop allows the system to identify and correct biases, overfitting, or underfitting issues in real-time. The feedback-driven approach ensures that training efficiency does not compromise reliability, as the model adapts based on performance feedback while maintaining resource-efficient operation.

Inventive Principle:
Principle #23Feedback

Solution Approach 2:

The patent dynamically adjusts training parameters such as learning rate, batch size, and regularization strength based on model performance metrics. By changing these parameters adaptively, the system can achieve reliable trade outcomes without requiring excessively large or complex training data sets. Parameter changes allow the model to optimize its learning process for maximum efficiency and accuracy balance.

Inventive Principle:
Principle #35Parameter changes

3Speed

If AI models provide only predictions without explanation, then the decision-making process is faster and simpler, but users lack confidence and ability to verify the recommendations

Engineering Contradiction:
Improvedecision-making speedVSAvoidexplanability information
Core Design Contradiction:
SpeedVSLoss of information

Solution Approach 1:

The patent segments the model output into two distinct components: the prediction result and the explanation rationale. This segmentation allows the system to provide both fast predictions and detailed explanations without compromising either speed or information completeness. The separated structure enables users to quickly obtain decisions while also having access to verification information when needed.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces an intermediary explanation layer that translates the model's internal reasoning into human-understandable justifications. This intermediary component bridges the gap between the fast prediction mechanism and the need for explainability, allowing users to verify recommendations without slowing down the core decision-making process. The explanation acts as a mediator that preserves both speed and information.

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentUS20230409970A1Method and system for determining event occurrence based on data signals
Publication Date: 2023.12.21 TREHAN RAJIV
  • US20230409970A1 patent drawing
  • US20230409970A1 patent drawing
  • US20230409970A1 patent drawing

AI summary

A method and system for determining occurrence of events based on data signals is disclosed. The method includes receiving a plurality of data signals associated with an entity from a plurality of data sources. The method includes deriving one or more data signals from the plurality of data signals. Each of the one or more derived data signals includes an associated time dimension. The method includes identifying a pattern associated with the entity within the one or more derived data signals and the plurality of data signals. The pattern corresponds to occurrence of two or more data signals within an overlap in the time dimensions associated with the two or more data signals. The method includes determining occurrence of an event associated with the entity within a predefined time period, based on the identified pattern and the overlap in the time dimensions associated with the two or more data signals.