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Whitepaper

PsyEdge: A Comprehensive Framework for Trading Psychology and Mental Health Optimization

Version 2.0 | December 2025

Abstract

Trading success is fundamentally a psychological challenge. While technical analysis and market knowledge are essential, 80% of trading outcomes are determined by psychology, not strategy. This whitepaper presents PsyEdge, an AI-powered system that continuously tracks and monitors a trader's mental, emotional, and physical state to determine if they are in the right psychological condition to trade safely and profitably.

Unlike traditional trading journals that focus solely on trade outcomes, PsyEdge tracks YOU, the trader. Our system provides real-time assessments, warnings, and actionable insights to protect traders from trading when they're not ready. By combining daily mental health check-ins with trading activity analysis, we ensure traders always know their psychological state before making trading decisions.

The More You Log, The Better The Analysis

All data you log is permanently stored in the database and continuously improves the AI's understanding of you as a trader. Every daily check-in, every trade, and every journal entry you complete makes the AI know you better. The more data you provide, the more personalized and accurate the analysis becomes.

Over time, the system develops a deep understanding of your unique psychological patterns, triggers, and optimal trading conditions. After weeks and months of consistent logging, the AI knows you better than you know yourself - providing insights that become increasingly valuable and precise.

The system analyzes your previous day's trades, trading journal entries, and comprehensive mental health data to provide a Trading Readiness Score - a clear YES/NO recommendation on whether you should trade today. This protective mechanism has been shown to significantly reduce revenge trading, emotional decision-making, and trading during compromised mental states.

Core Philosophy

The best trade is sometimes the one you don't take. PsyEdge is built on the fundamental principle that protecting your mental health and capital is more important than taking every opportunity. The system is designed to be protective, not permissive - it will tell you when NOT to trade.

Protection Over Profit

Our system prioritizes your psychological safety and capital preservation over maximizing trade frequency. We believe that avoiding bad trades is more valuable than taking marginal opportunities. The AI is conservative by design - it would rather you miss a good trade than take a bad one while emotionally compromised.

Data-Driven Self-Awareness

You can lie to yourself, but you can't lie to your P&L. PsyEdge provides objective, data-driven insights into your psychological patterns. By tracking yourself like you track markets, you gain genuine self-awareness that leads to better decision-making. The system proves with data that your mental state directly impacts your trading performance.

The Problem

Traditional trading journals and performance tracking tools focus primarily on technical analysis and trade outcomes, completely neglecting the critical psychological component that often determines trading success or failure. Most traders lose money not because of bad strategies, but because of poor psychological state.

Key Challenges Traders Face:

1. No Systematic Mental State Tracking

Traders have no way to systematically track their mental, emotional, and physical state before trading. They rely on subjective "feeling" rather than objective assessment, leading to trading while stressed, tired, or emotionally compromised.

2. Revenge Trading After Losses

After experiencing losses, traders often enter revenge trades - emotional decisions made to "make back" losses. This is one of the most dangerous behaviors in trading, yet most traders have no system to prevent it. Our system detects this pattern and provides clear warnings.

3. Trading During Poor Mental States

Traders often trade when they're stressed, sleep-deprived, or emotionally unstable. These conditions significantly impair decision-making ability, yet traders continue trading because they lack awareness of their compromised state.

4. No Correlation Between Psychology and Performance

Without systematic tracking, traders cannot see the clear correlation between their mental state and trading outcomes. They don't realize that trading while in a good mental state leads to better results, and trading while compromised leads to losses.

5. Lack of Personalized Psychological Insights

Every trader has unique psychological patterns, triggers, and optimal trading conditions. Without personalized analysis, traders cannot identify their specific patterns or learn when they perform best.

Our Solution: Continuous Mental Health Tracking

PsyEdge introduces a comprehensive, multi-dimensional approach to trading psychology that continuously monitors and tracks your mental health to ensure you always know if you're ready to trade. The system combines daily mental health check-ins, trading activity analysis, and AI-powered pattern recognition to provide real-time psychological assessments.

Core Principle: We Always Know If You're Ready

Before you even think about trading, PsyEdge knows your psychological state. Through daily check-ins and continuous monitoring, the system maintains real-time awareness of your mental, emotional, and physical condition. This ensures you never trade while compromised, protecting both your capital and your psychological well-being.

System Components

1. Daily Mental Health Check-In

Every single day, before you trade, you complete a comprehensive check-in covering:

Mental State (0-10 scale):

  • Overall mental state
  • Emotional stability
  • Stress level
  • Confidence level
  • Discipline score

Physical State:

  • Hours of sleep
  • Sleep quality
  • Energy level
  • Physical health

Emotional Indicators:

  • Anxiety level
  • Overall mood
  • Emotional triggers
  • Major life events
  • External stressors

Life Factors:

  • Substance use
  • Personal notes

AI Analysis & Trading Readiness Assessment:

After submission, our AI analyzes ALL factors, including your previous day's trades and trading journal entries, to provide:

  • Trading Readiness Score (0-100%): Precise assessment of your readiness to trade today
  • Ready to Trade (YES/NO): Clear binary recommendation
  • Detailed Reasoning: Why you are or aren't ready, with specific factors
  • Comprehensive Analysis: Deep dive into your current psychological state
  • Personalized Recommendations: 3-5 specific actions for today
  • Risk Warnings: Specific risks to watch for based on your state
  • Critical Alerts: Automatic warnings if you should NOT trade
  • Six Detailed Scores: Mental Health, Physical Readiness, Emotional Stability, Focus, Stress Management, and Sleep Quality

2. Trading Readiness Score

This is the core protection mechanism. The AI calculates your readiness by combining:

  • Your current mental state scores (overall mental state, emotional stability, confidence, discipline)
  • Physical state (especially sleep hours and quality, energy level)
  • Emotional stability (anxiety level, mood, triggers)
  • Your previous day's trades - wins, losses, PnL, and psychological impact
  • Your trading journal entries from yesterday - reflections, emotional state, whether you followed your plan
  • Recent trading performance and patterns
  • Identified psychological patterns that might be active
  • Known triggers from your profile
  • Trading mode-specific risks

Readiness Thresholds:

  • ≥60% (Ready to Trade): Your psychological state is suitable for trading
  • 40-59% (Trade with Caution): Proceed with reduced position sizes and extra vigilance
  • <40% (DO NOT TRADE): Your mental state is compromised. Trading now is dangerous.

The AI is PROTECTIVE and HONEST. If you shouldn't trade, it will tell you clearly. The system prioritizes your safety and capital preservation over trade opportunities.

3. Critical Alerts & Warnings System

The system automatically creates alerts when concerning patterns are detected. These alerts are designed to stop you from trading when you're not ready.

INFO

Be aware of this factor

WARNING

Proceed with extreme caution

CRITICAL

STOP TRADING IMMEDIATELY

Alert Types:

  • Low Readiness: Mental state below safe threshold
  • High Stress: Stress levels dangerous for trading
  • Poor Sleep: Insufficient or poor quality sleep detected
  • Revenge Trading Risk: Recent losses detected + emotional state suggests revenge trading risk
  • Overtrading Risk: Too many trades in short period
  • Emotional Instability: High anxiety or poor emotional control
  • Declining Trend: Mental state deteriorating over multiple days
  • Burnout Risk: Chronic stress and fatigue patterns
  • Pattern Detected: Known negative psychological pattern triggered

Alerts must be acknowledged - you can't ignore them. This ensures you're always aware of your psychological state before trading.

4. Mental Health Dashboard

A comprehensive view of your mental health over time, showing trends, patterns, and correlations:

Summary Cards:

  • Average Readiness Score (last 30 days)
  • Ready Days vs Not Ready Days
  • Current Trend (Improving/Stable/Declining)
  • Days with Critical Alerts

Interactive Charts:

  • Mental State over time
  • Trading Readiness over time
  • Stress Level trends
  • Sleep Quality patterns
  • Visual correlation between mental state and trading performance

Correlation Analysis:

The system calculates the correlation between your mental state and trading outcomes, proving with data that your mental state matters.

  • >0.7: Strong positive correlation - mental state significantly impacts performance
  • 0.3-0.7: Moderate correlation
  • 0-0.3: Weak correlation

Recent Check-Ins Timeline:

Quick view of your last check-ins with readiness scores, alerts, and key insights. Click on any check-in to see detailed analysis.

5. AI-Identified Psychological Patterns

After 7+ days of data, the system analyzes your historical patterns to identify recurring psychological behaviors:

Pattern Types:

  • Weekly cycles (predictable ups/downs)
  • Post-loss behavior patterns
  • Post-win behavior (overconfidence?)
  • Time of day performance
  • Sleep impact on trading
  • Life event impact

For Each Pattern:

  • Clear description of what was observed
  • Confidence score
  • Trigger conditions
  • Typical duration
  • Impact severity
  • Coping strategies
  • Preventive measures

Patterns help you understand yourself better and predict future behavior, allowing you to prepare for or avoid triggering negative patterns.

6. Trade Tracking & Journal System

Comprehensive trade tracking with mode-specific data and detailed journal entries:

Trade Tracker:

  • Log trades with automatic timestamping
  • Mode-specific fields (leverage for perpetuals, market cap for memecoins, etc.)
  • Automatic PnL calculation (including leverage for perpetuals)
  • Liquidation tracking for perpetuals
  • View all trades with dates, entry/exit prices, and PnL

Trading Journal:

  • AI-generated contextual questions based on your trade and profile
  • Reflect on what influenced your decisions
  • Track whether you followed your plan
  • Assess emotional control and risk management
  • Journal entries enhance mental health assessments

7. AI Profile Summary

Get a comprehensive AI analysis of you as a trader, generated from:

  • Your registration profile (trading style, experience, goals, triggers, strengths, weaknesses)
  • All your trades and their outcomes
  • Your daily check-ins and mental health trends
  • Your journal entries and reflections
  • Identified psychological patterns

The analysis provides personalized goals, strengths, areas to watch, and actionable recommendations. Can be regenerated every 12 hours to reflect your latest data and growth.

8. Trading Readiness Assessment

Real-time assessment tool that evaluates your current readiness to trade based on:

  • Your most recent daily check-in
  • Recent trading performance
  • Current psychological patterns
  • Time since last trade
  • Recent wins/losses and their impact

Provides immediate feedback on whether you should trade right now, with detailed reasoning and recommendations.

How It All Works Together

Morning Routine: The Foundation

  1. Wake up → Complete Daily Check-In (takes 2-3 minutes)
  2. Get AI Analysis → See your Trading Readiness Score and YES/NO recommendation
  3. Review Alerts → Address any warnings or critical alerts
  4. Decision Point: Trade or Not?

If Readiness ≥60% and NO critical alerts: ✅ You're cleared to trade. Review your plan and start trading session.

If Readiness <60% or critical alerts: 🛑 DO NOT TRADE. Follow AI recommendations, address the issues. Tomorrow is another day.

During Trading: Log Your Trades

As you trade, log each trade in the Trade Tracker. The system automatically:

  • Timestamps your trade with the current date/time
  • Calculates PnL automatically (including leverage for perpetuals)
  • Tracks mode-specific data (liquidation price, market cap, etc.)
  • Links trades to your daily check-in data

After Trading: Reflect in Journal

After closing trades, fill out detailed journal entries. The system:

  • Generates contextual questions based on your trade and profile
  • Helps you reflect on what influenced your decisions
  • Tracks whether you followed your plan, controlled emotions, and managed risk
  • Uses this data to enhance tomorrow's mental health assessment

Continuous Monitoring

The system continuously tracks and analyzes:

  • Your mental health trends over time
  • Correlations between mental state and trading performance
  • Psychological patterns that emerge
  • When you perform best and worst
  • How your previous day's trades affect your current state

This ensures we always know your psychological state and can provide accurate readiness assessments every single day.

Technical Architecture

PsyEdge is built on a modern, scalable architecture designed for real-time analysis and personalized insights:

Core Components

  • Daily Check-In System: Comprehensive mental health assessment with AI analysis
  • AI Analysis Engine: GPT-4 powered analysis considering all factors including previous day's trades and journal entries
  • Pattern Recognition: Identifies psychological patterns from historical data
  • Alert System: Real-time warnings and critical alerts
  • Correlation Engine: Calculates relationships between mental state and trading performance
  • Trade Tracking: Mode-specific trade logging with automatic calculations
  • Journal System: Contextual question generation and reflection tracking

Data Model

The system maintains comprehensive records of:

  • User Profiles: Trading style, experience, risk tolerance, psychological triggers, strengths, weaknesses
  • Daily Check-Ins: Complete mental, physical, and emotional state records with AI analysis
  • Trades: All trades with timestamps, prices, PnL, mode-specific data
  • Journal Entries: Detailed reflections linked to trades
  • Mental Health Patterns: AI-identified behavioral patterns
  • Alerts: Warnings and critical notifications
  • Trends: Aggregated mental health trends over time

Technology Stack

  • Frontend: Next.js 14, React, TypeScript, Tailwind CSS
  • Backend: Next.js API Routes, Supabase
  • AI: OpenAI GPT-4 for analysis and insights
  • Database: PostgreSQL via Supabase
  • Authentication: Solana wallet-based authentication

Scoring Methodology

Our proprietary scoring system combines multiple factors to provide a comprehensive readiness assessment. All scores are calculated with mathematical precision using varied decimals (0.68, 0.72, 0.83) rather than round numbers.

Six Individual Scores (Each 0.00-1.00):

  • Mental Health Score: Overall mental state, emotional stability, confidence
  • Physical Readiness Score: Sleep hours, sleep quality, energy, physical health
  • Emotional Stability Score: Emotional stability, anxiety level, mood
  • Focus Score: Mental state, confidence, energy level
  • Stress Management Score: Stress level (inverted), external stressors, anxiety
  • Sleep Quality Score: Sleep hours and sleep quality combined

Trading Readiness Score

Calculated as the average of all 6 individual scores:

Trading Readiness = (Mental Health + Physical Readiness + Emotional Stability + Focus + Stress Management + Sleep Quality) / 6

Ready to Trade: true if Trading Readiness Score ≥ 0.6 (60%), false otherwise.

The system also considers your previous day's trades and journal entries when calculating readiness, ensuring that recent trading activity and its psychological impact are factored into the assessment.

Key Features & Capabilities

Multi-Mode Trading Support

PsyEdge supports all major trading modes with mode-specific features:

Solana Memecoins

  • Market cap tracking
  • Rug risk assessment
  • FOMO detection
  • Social score tracking

Spot Trading

  • Entry/exit price tracking
  • Hold period analysis
  • Fundamental conviction

Perpetuals

  • Leverage tracking
  • Liquidation price monitoring
  • Leverage-adjusted PnL
  • Liquidation event tracking

Previous Day Integration

A unique feature: Every daily check-in considers your previous day's trading activity:

  • Yesterday's Trades: All trades from the previous day are analyzed for wins, losses, total PnL, and psychological impact
  • Yesterday's Journal Entries: Your reflections, emotional state, and whether you followed your plan are factored in
  • Revenge Trading Detection: If you had multiple losses yesterday, the system warns about revenge trading risk
  • Significant Loss Impact: Large losses from yesterday are flagged as potentially affecting your current emotional state

This ensures that the psychological impact of your recent trading activity is always considered in your readiness assessment.

Real-Time Alerts & Warnings

The system provides immediate feedback when concerning patterns are detected:

  • Automatic alert generation based on your check-in data
  • Severity levels (Info, Warning, Critical)
  • Clear recommended actions for each alert
  • Alert acknowledgment system to ensure you're aware
  • Historical alert tracking to identify recurring issues

Comprehensive Analytics

The Mental Health Dashboard provides deep insights into your psychological patterns:

  • Interactive charts showing mental state trends over time
  • Correlation analysis between mental health and trading performance
  • Pattern identification with confidence scores
  • Trend analysis (improving, stable, or declining)
  • Historical check-in review with detailed analysis

Use Cases & Applications

Day Traders

Quick psychological check-ins before executing high-frequency trades. The system helps maintain discipline during volatile market conditions and prevents revenge trading after losses. Real-time readiness assessments ensure you're mentally prepared for each trading session.

Swing Traders

Comprehensive analysis before entering multi-day positions. Helps identify psychological patterns that correlate with successful trades and position holds. The system tracks how your mental state affects your ability to hold positions through volatility.

Perpetuals Traders

Special focus on leverage risk and liquidation awareness. The system tracks liquidation events and their psychological impact. PnL calculations automatically account for leverage, and the system warns about revenge trading risk after liquidations or significant losses.

Memecoin Traders

FOMO detection and rug risk awareness. The system helps you maintain discipline in highly volatile, emotionally charged markets. Tracks how social media influence and market cap changes affect your decision-making.

Professional Traders

Advanced analytics and pattern recognition for traders managing multiple positions. Provides team-level insights and helps identify optimal trading conditions based on psychological state. The correlation analysis proves the value of mental health tracking with concrete data.

Success Metrics

The system is working effectively when:

  • You complete daily check-ins consistently
  • You respect readiness scores and don't trade when warned
  • Your correlation score improves (mental state → better outcomes)
  • You identify and manage your psychological patterns
  • You have fewer revenge trades
  • You avoid trading during poor mental states
  • Your overall mental health trend is "improving"
  • You develop genuine self-awareness about your trading psychology

Remember: The goal isn't more trades. It's BETTER trades. And sometimes, the best trade is the one you don't take.

Important Notes

Data Requirements & Learning System

  • Minimum 7 days of data needed for pattern identification
  • Minimum 5 trades needed for correlation analysis
  • Daily check-ins are NOT optional - they're the foundation of the system

The More You Log, The Better The Analysis

All data you log is permanently stored in the database and continuously improves the AI's understanding of you as a trader. The system learns from:

  • Every daily check-in you complete
  • Every trade you log
  • Every journal entry you write
  • Every pattern identified
  • Every correlation discovered

The more data you provide, the more personalized and accurate the AI becomes. Over time, the system develops a deep understanding of your unique psychological patterns, triggers, optimal trading conditions, and how your mental state correlates with your trading performance. This means that after weeks and months of consistent logging, the AI knows you better than you know yourself - providing insights that become increasingly valuable and precise.

Critical Alerts

Critical alerts should STOP you from trading - take them seriously. The system is designed to be protective, not permissive. If the AI says you shouldn't trade, there's a good reason.

The AI is conservative by design - it would rather you miss a good trade than take a bad one while emotionally compromised.

Honesty is Critical

The system only works if YOU are honest:

  • Don't lie about sleep
  • Don't hide emotional state
  • Don't ignore alerts
  • Don't trade when system says NO

You can lie to yourself, but you can't lie to your P&L.

Future Development

Our roadmap includes several advanced features to further enhance trading psychology insights:

  • Enhanced Pattern Recognition: Machine learning models to identify subtle psychological patterns that lead to success or failure
  • Biometric Integration: Heart rate variability and stress indicators from wearable devices
  • Advanced Correlation Analysis: Multi-factor correlation models considering time of day, day of week, market conditions
  • Predictive Alerts: Proactive warnings based on predicted mental state changes
  • Mobile App: Quick check-ins and alerts on mobile devices
  • Team Analytics: For trading teams and firms to track collective psychological health
  • Integration APIs: Connect with trading platforms for automatic trade import

Conclusion

PsyEdge represents a paradigm shift in how traders approach psychology and performance optimization. By continuously tracking mental health, correlating it with trading outcomes, and providing AI-powered recommendations, we ensure traders always know if they're ready to trade.

Trading is as much a psychological game as it is a technical one. Our system ensures that traders never overlook the mental component of their success. We track your mental health every single day, and we always know if you're ready to trade.

"The market will always be there. Your capital won't."

The best traders know when NOT to trade. PsyEdge helps you develop that judgment through self-awareness, data, and AI-powered insights. Your mental health IS your edge. Protect it.