PatternX feature
PatternX AI: contextual evaluation of detected setups
By the PatternX team · Published
PatternX AI
PatternX AI is an extra evaluation layer for setups the deterministic engine has already detected: a fixed, transparent 8-factor formula scores the market context, can veto the setup, and re-weights the confidence you see. It is not machine learning or an LLM, and it never finds or invents patterns. It suits traders who want a context check on top of Classic, on Pro (up to 5 AI-mode trades a day) or Elite (unlimited).
Availability: Pro (up to 5 AI-mode trades a day) and Elite (unlimited)
Where PatternX AI sits
PatternX AI is a second look at context, not a second detector. The deterministic engine first finds the pattern, applies the market filters and scores it with the 13-factor PatternX Score, exactly as in PatternX Classic. Only setups it has accepted, with a confidence of at least 50, reach the AI layer. The layer then measures the market around the setup and either drops it or passes it on with a re-weighted confidence.
The mode is one setting per account, and new accounts start in Classic. Switching it changes less than many people expect:
| Stays the same as Classic | Changes in AI mode |
|---|---|
| The 20 detectors and the market filters | Setups with weak context are vetoed |
| The 13-factor PatternX Score | The confidence you see is re-weighted |
| Take-profit, stop-loss and position size | A short reasoning note is attached |
| Risk checks and the execution path | On Pro, AI-mode trades are capped at 5 a day |
The eight context factors
Each factor is scored from 0 to 100 and weighted:
| Factor | Weight | What it reads |
|---|---|---|
| Trend strength | 1.5 | The 12-period EMA against the 26-period EMA |
| Confluence | 1.5 | How many of trend, structure, volume and momentum agree |
| Market structure | 1.3 | Whether the last 3 swing highs and lows (within 60 candles) agree with the trade |
| Volume quality | 1.2 | The latest bar's volume against its 20-bar average |
| Historical similarity | 1.2 | The live win rate PatternX has recorded for that exchange and symbol, from 10 closed trades; until then, a fixed per-pattern prior |
| Momentum | 1.0 | RSI(14) in the trade's direction |
| Volatility regime | 0.8 | ATR(14) as a % of price, scoring highest around 1% |
| Sentiment | 0.6 | The perpetual-futures funding rate only; neutral for stocks and FX |
The context score is the weighted mean of the eight. Nothing else goes in: no news, no social sentiment, no order book, no correlation data and no external calls. Background on the inputs: moving averages, momentum and funding rates.
The veto and the re-weighted confidence
The layer returns a context score, a veto decision, a re-weighted confidence and a short reasoning note built from a template. A setup is vetoed unless its context score is at least 48, and it is also vetoed whenever market structure is below 35 and momentum is below 40 at the same time. A setup that survives is shown with its confidence re-weighted using the context score, so the number you see reflects both the pattern and its surroundings.
For example, take a hypothetical long setup that scores trend 70, structure 30, volatility 60, volume 50, momentum 35, confluence 40, historical similarity 60 and sentiment 50. The weighted mean is 449 ÷ 9.1, about 49.3, which clears 48. But structure (30) is below 35 and momentum (35) is below 40, so the setup is vetoed anyway. Had structure been 45, the context score would be about 51.5 and the setup would pass.
The AI context layer methodology covers the layer in more depth.
Plans and daily limits
PatternX AI is available on Pro and Elite. Pro allows up to 5 trades a day while in AI mode, inside Pro's overall quota of 100; Elite has no AI-mode limit. Free and Starter accounts use Classic.
Separate from the written explanations
PatternX also uses large language models (from OpenAI or Anthropic, when configured), but only to write: signal explanations, the assistant, daily, weekly and monthly reports, education lessons, backtest write-ups and the support assistant. These models never sit on the detection, risk or execution path, and they are instructed not to give buy or sell advice. The context layer itself contains no language model.
Who it suits
AI mode suits traders who like Classic's detection but want an extra check that drops setups whose trend, structure and momentum don't line up with the trade. If you'd rather see every setup that clears your own confidence minimum, Classic is the simpler choice. For the wider debate, see AI trading vs rule-based trading; for the side-by-side, see Classic vs AI.
Limitations
- The inputs describe what has already happened (prices, volume, funding and past PatternX results), so like any indicator they lag turning points.
- A veto can remove a setup that would have worked, and passing the check doesn't make a trade a winner.
- Until a market has 10 closed trades, historical similarity uses a fixed prior rather than measured results.
- The weights are fixed and don't adjust as market conditions change.
Frequently asked questions
Is PatternX AI machine learning?
No. It's a fixed weighted formula over eight measurements computed from market data, with nothing trained, no external calls and no language model, so the same inputs always give the same output.
Can PatternX AI find setups that Classic misses?
No. It only evaluates setups the deterministic engine has already detected and accepted, so every AI-mode signal starts life as a Classic detection.
What happens if the AI evaluation fails?
That setup is evaluated as Classic instead, and it still goes through the same risk checks before any order is placed.
Does AI mode work for stocks and FX?
Yes. The sentiment factor reads perpetual-futures funding, so for stocks and FX it sits at neutral and only the other seven factors can move the context score.
Can I try PatternX AI before subscribing to Pro or Elite?
Yes. The Elite 7-day pass costs $9.99 once and unlocks Elite, including unlimited AI-mode trades, for 7 days. It's available once per account, can't be added on top of an active paid plan and doesn't renew.