Key Observation: The strategy achieved positive returns in 41 out of 60 months, with a win rate of 68.33%. The maximum monthly gain was 12.80% (July 2023), while the maximum monthly loss was -5.82% (October 2021).

Risk Analysis: The strategy's maximum drawdown was -4.18% (September 2023), with an average monthly drawdown of -2.44%, demonstrating strong risk control capabilities. The annualized Sharpe ratio of 3.12 indicates the strategy delivers high returns per unit of risk taken.

6.1 Prediction Methodology

The Daotx AI prediction model utilizes deep learning technology with the following key approaches:

• LSTM Neural Networks: Process time-series data to capture long-term market dependencies
• Transformer Architecture: Analyze market patterns across multiple time scales
• Reinforcement Learning: Optimize trading decisions by simulating real trading environments
• Ensemble Learning: Combine predictions from multiple sub-models to enhance robustness

6.2 Feature Engineering

The model incorporates the following key features:

• Historical price data (open, high, low, close)
• Trading volume and technical indicators (RSI, MACD, Bollinger Bands, etc.)
• Market sentiment indicators (social media sentiment, news sentiment)
• On-chain data (large transfers, exchange inflows/outflows)
• Macroeconomic indicators (Dollar Index, interest rate changes)

6.3 Model Validation

The model was validated through:

• Walk-Forward Validation: Simulate performance in real trading environments
• Monte Carlo Simulation: Evaluate strategy robustness under different market conditions
• Out-of-Sample Testing: Validate using completely unseen data

Disclaimer: All predictions are based on historical data and statistical models and should not be construed as investment advice. Cryptocurrency markets are highly volatile, and past performance is not indicative of future results. Investors should make decisions based on their own risk tolerance.