Trade Classification
Purpose
TradeMonkey automatically classifies your trades so it knows which rules to apply, which patterns to analyze, and how to group behavior accurately.
You never need to define a tagging system or maintain a taxonomy.
How Classification Works
After each trade, TradeMonkey analyzes:
- market context
- execution behavior
- trade duration
- psychology data
- similarity to prior trades
From this, it assigns each trade to a behavioral classification (e.g., momentum scalp, range trade, late entry).
These classifications are used internally by:
- Rules vs Reality
- Execution Recaps
- Pattern analysis
- AI diagnostics
Your Role (Minimal by Design)
You are not responsible for:
- creating labels
- deciding tag names
- managing consistency
- configuring rule scopes
Your only role is to:
- confirm when a classification is correct
- correct it when it's wrong
This keeps your focus on trading decisions, not system setup.
When You'll Be Asked to Intervene
TradeMonkey will only ask for input when:
- a trade doesn't clearly fit existing patterns
- two similar trades behave differently
- rule evaluation requires clarification
You'll see prompts like:
"Does this trade belong with these similar ones?"
These corrections help the system learn and improve automatically.
System Context vs Behavior
Some classifications are derived automatically and never require confirmation, such as:
- trading session
- direction (long/short)
- duration bucket
- instrument family
Others relate to behavior and intent, which only you can validate.
Why This Matters
Accurate classification allows TradeMonkey to:
- apply the right rules to the right trades
- detect behavioral drift earlier
- avoid false violations
- surface patterns you would otherwise miss
This happens without requiring upfront configuration.
Key Principle
If you ever feel like you're "setting up a tagging system," something has gone wrong.
TradeMonkey is designed to adapt to how you trade, not the other way around.