Infinity Algo AI System Disclosure

SECTION 1 – PURPOSE AND FUNCTION OF THE AI SYSTEM

The "AI Clustering" feature in Infinity Algo is an optimization algorithm, not a predictive one. Its purpose is to help traders adapt to changing market conditions by analyzing recent historical data to find which indicator settings would have performed most effectively in the immediate past.

It functions as an automated strategy tester that runs in the background of your TradingView chart. The system does not engage in "self-learning" or evolve on its own; it simply performs a new, isolated analysis during each cycle. The system does not create or manipulate audio, image, or video content; Art 52 deep-fake rules therefore do not apply.

SECTION 2 – HOW THE AI SYSTEM WORKS

When the "AI Clustering" feature is enabled, the indicator performs the following steps periodically. This recalculation is triggered once every `X` bars, based on the "AI Update Frequency" setting you control (default is 50 bars).

1. Parameter Simulation: The system simulates hundreds of trading strategies by testing different combinations of core indicator settings against recent historical price data (by default, the last 500 bars). The parameters tested include:
   • Sensitivity: Testing periods within user-selected ranges (e.g., "Fast (10-14)", "Balanced (10-20)", etc.).
   • Upper/Lower Thresholds: Testing a predefined set of values for buy and sell thresholds (e.g., Upper: `[66, 68, 70, 74, 76]`, Lower: `[26, 28, 30, 34, 36]`).
2. Performance Scoring: Each simulated combination is scored based on a user-selected performance metric. This allows you to define what "best" means for your trading style. The available metrics are:
   • Profit Factor * Sqrt(Trades)
   • Average Profit
   • Win Rate
   • Total Profit
   • Profit Factor
3. Optimal Configuration Selection: The system identifies the single combination of settings that achieved the highest score on the chosen performance metric over the recent historical data.
4. Signal Adaptation: The indicator then uses this "optimal" configuration to generate the "AI" Buy and Sell signals on your live chart until the next recalculation cycle.

The AI Dashboard on the chart displays the settings that the system has currently identified as optimal. Because this entire process runs locally within TradingView's environment, complex simulations (e.g., low "AI Update Frequency") can increase chart redraw times or cause indicator timeouts. We recommend using this feature on timeframes of 15 minutes or higher for a smoother experience.

SECTION 2.1 - KEY PERFORMANCE CHARACTERISTICS & HUMAN OVERSIGHT

The performance of the AI optimizer is characterized by the following typical metrics:

• Mean Profit Factor: On a 4-hour BTC/USD chart, the default settings typically identify configurations with a simulated profit factor of approximately 1.35 over the lookback period.
• Optimization Speed: A standard optimization cycle on a 4-hour chart completes in approximately 0.8 seconds.
• Reliability: The operational failure-rate (e.g., a script timeout error) is below 1% on timeframes of 15 minutes or higher.

Human Oversight and Control

You always remain in full control of the AI system. You can:

• Disable the AI: Turn off "AI Clustering" at any time using the "AI Enabled" toggle in the indicator's settings.
• Control Frequency: Adjust the "AI Update Frequency" to determine how often the system recalculates.
• Override Parameters: Manually change any indicator setting to override the AI's suggestions at any time. We recommend you review the AI's chosen settings after each recalculation to ensure they align with your strategy.

SECTION 3 – TRAINING DATA

The AI system does not use external or private data sets. The "training data" consists solely of the historical OHLCV (Open, High, Low, Close, Volume) market data available directly on the user's TradingView chart, typically from the last 500 bars.

The optimizer processes no personal data within the meaning of GDPR art 4(1). Crucially, all computations occur locally in your TradingView environment—no data is ever sent to Infinity Algo servers or any external "black box" model. The system analyzes historical data to find patterns that can inform the optimal indicator settings. No personal user data is ever accessed or used in this process.

SECTION 4 – LIMITATIONS AND RISKS

It is crucial for users to understand the limitations of this AI system:

Historical Limitation (Past ≠ Future)

• The system's recommendations are based entirely on what would have worked in the past. Past performance is not an indicator or guarantee of future results, and there is no guarantee that the selected "optimal" settings will be profitable in live market conditions.

Non-Predictive Nature

• The AI does not predict future price movements. It is a reactive tool that optimizes settings based on historical analysis. It is not a "self-learning" or continuously evolving model.

Curve-Fitting Dangers

• As with any backtesting, there is a risk that the settings identified as "optimal" are simply "curve-fitted" to past data and may not perform well in the future.

Exclusion of Real-World Costs

• Because the AI's backtests are simulations, they do not include factors like exchange fees, slippage, or network latency. Live trading results may differ materially from the simulated outcomes.

Foreseeable Misuse Warning

Do not connect the "AI Clustering" feature directly to an automated trade-execution bot without implementing independent risk-management checks. Unsupervised automation based on historical optimization may lead to over-trading, excessive transaction fees, and liquidation risk.

The AI system is a tool for analysis and decision-support, not a replacement for proper risk management and independent judgment. All trading decisions and their outcomes are the sole responsibility of the user. For a full breakdown of risks, please see our Disclaimer.

SECTION 5 – RECOMMENDED BEST PRACTICES

To use the AI Clustering feature effectively, we recommend the following risk control measures:

• Validate on a Demo Account: Always test the AI-optimized settings on a paper trading or demo account before deploying them with live capital.
• Use Independent Risk Management: Continue to use standard risk management tools, such as stop-loss orders and appropriate position sizing, regardless of how "optimal" the AI settings appear.
• Re-evaluate Periodically: Market conditions change. Periodically re-evaluate the AI's settings and the lookback window to ensure outdated data is not biasing the results, especially after major market events.

SECTION 6 – BIAS MITIGATION AND TECHNICAL DETAILS

Bias: Because the AI optimizer only evaluates parameter combinations against objective, mathematical performance metrics (e.g., Profit Factor, Win Rate), it is not subject to the demographic, social, or cognitive biases that can affect human-labeled data sets.

Data Integrity: The accuracy of the AI's output depends on the quality of the data feed from TradingView. Data irregularities, such as historical corrections or missing bars, may affect the optimizer's outcomes.

Pine Script Version: The AI Clustering feature is implemented in Pine Script v6. Please ensure your TradingView chart environment is up to date to avoid potential compatibility issues.

SECTION 6.1 - POST-DEPLOYMENT MONITORING

We continuously log anonymised optimisation failures (e.g., script timeouts) to monitor the system's performance across different market conditions. We commit to patching any material issues that are identified within 30 days of confirmation. A public changelog of updates is available at docs.infinityalgo.com/changelog.

SECTION 7 – CONTACT AND COMPLAINTS

If you have any questions about our AI system, or if you believe the system has malfunctioned or violated your rights, please contact our dedicated AI compliance address at [email protected]. We commit to acknowledging receipt of your complaint within 72 hours and providing a substantive response within 14 days.

SECTION 8 – SEVERABILITY

If any part of this disclosure is held unenforceable by a court of competent jurisdiction, the remainder shall remain in full force and effect.