Vanta — Regime Detection
Vanta continuously classifies market behavioral states to ensure every strategy matches current conditions.
Overview
Vanta is the Regime Detection Agent — the foundation of PerpDesk's coordination pipeline. Before any strategy is selected or trade is executed, Vanta answers the most important question in trading: What kind of market are we in right now?
Markets behave differently depending on their regime. A momentum strategy that prints money in a trending market will bleed in a range. A mean-reversion approach that thrives in quiet markets will get steamrolled by a breakout. Vanta ensures that every downstream decision is regime-appropriate.
How It Works
Vanta uses a multi-factor classification model that processes:
- Price action patterns — Trend strength, range boundaries, breakout signals
- Volatility metrics — ATR, implied vs. realized volatility, volatility of volatility
- Volume analysis — Volume profile, participation rates, unusual activity
- Market microstructure — Order book depth, spread dynamics, trade flow toxicity
- Cross-asset correlations — How the current asset relates to the broader market
Based on these inputs, Vanta classifies the market into one of several regime states:
| Regime | Description | Strategy Implications |
|---|---|---|
| Trending | Strong directional movement with sustained momentum | Favor momentum and breakout strategies |
| Ranging | Price oscillating within defined boundaries | Favor mean-reversion and grid strategies |
| Volatile | High uncertainty with rapid swings | Reduce position sizing, widen stops |
| Quiet | Low volatility, narrow ranges | Reduce activity, prepare for breakout |
| Transitioning | Regime shift in progress | Reduce exposure, wait for confirmation |
Regime Transition Detection
One of Vanta's most critical capabilities is detecting regime transitions — the moments when markets shift from one state to another. These transitions are when most losses occur (strategies deployed for the old regime fail in the new one).
Vanta uses a confidence-weighted transition model that provides early warning of regime shifts, giving Riven time to adapt strategies before conditions fully change.
Configuration
- Sensitivity — How quickly Vanta declares a regime change (higher = faster but more false positives)
- Lookback period — The time window used for regime classification
- Asset scope — Which assets Vanta monitors for regime detection
- Transition alerts — Notification preferences for regime change events
Pipeline Integration
Vanta's regime classification is shared with every other agent:
- Riven uses regime data to select and parameterize strategies
- Koda adjusts execution timing based on volatility regime
- Brix tightens risk limits during volatile or transitioning regimes
- Lucid segments performance analysis by regime for accurate attribution