ARCHITECTURE.md

Architecture Overview

High-level system design, module structure, data flow, and component diagrams for QuantumVest.

Table of Contents

• System Architecture
• Component Diagram
• Data Flow
• Module Structure
• Technology Stack
• Deployment Architecture

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System Architecture

QuantumVest follows a modular microservices-inspired architecture with clear separation of concerns:

┌─────────────────────────────────────────────────────────────────┐
│                         Client Layer                             │
│  ┌──────────────┐  ┌──────────────┐  ┌──────────────┐          │
│  │ Web Frontend │  │    Mobile    │  │  External    │          │
│  │   (React)    │  │ (React Native│  │   API Clients│          │
│  └──────────────┘  └──────────────┘  └──────────────┘          │
└─────────────────────────────────────────────────────────────────┘
                           ▼ HTTP/WebSocket
┌─────────────────────────────────────────────────────────────────┐
│                         API Gateway                              │
│         ┌───────────────────────────────────────┐               │
│         │  Flask REST API (api_routes.py)      │               │
│         │  Authentication / Rate Limiting       │               │
│         └───────────────────────────────────────┘               │
└─────────────────────────────────────────────────────────────────┘
                           ▼
┌─────────────────────────────────────────────────────────────────┐
│                      Business Logic Layer                        │
│                                                                   │
│  ┌───────────────┐ ┌───────────────┐ ┌───────────────┐         │
│  │   Portfolio   │ │  Financial    │ │  Risk Mgmt    │         │
│  │   Service     │ │  Services     │ │  Service      │         │
│  └───────────────┘ └───────────────┘ └───────────────┘         │
│                                                                   │
│  ┌───────────────┐ ┌───────────────┐ ┌───────────────┐         │
│  │     Auth      │ │  Blockchain   │ │   WebSocket   │         │
│  │   Service     │ │   Service     │ │   Service     │         │
│  └───────────────┘ └───────────────┘ └───────────────┘         │
└─────────────────────────────────────────────────────────────────┘
                           ▼
┌─────────────────────────────────────────────────────────────────┐
│                      AI/ML Engine Layer                          │
│                                                                   │
│  ┌────────────────────────────────────────────────────────┐    │
│  │           Prediction Service                            │    │
│  │  ┌──────────────┐  ┌──────────────┐  ┌──────────────┐ │    │
│  │  │  LSTM Model  │  │  Sentiment   │  │   Pattern    │ │    │
│  │  │  (Stock/Cry  │  │  Analyzer    │  │  Recognition │ │    │
│  │  └──────────────┘  └──────────────┘  └──────────────┘ │    │
│  └────────────────────────────────────────────────────────┘    │
│                                                                   │
│  ┌────────────────────────────────────────────────────────┐    │
│  │           Training Pipeline                             │    │
│  │  - Data Preprocessing                                   │    │
│  │  - Feature Engineering                                  │    │
│  │  - Model Training                                       │    │
│  │  - Model Evaluation                                     │    │
│  └────────────────────────────────────────────────────────┘    │
└─────────────────────────────────────────────────────────────────┘
                           ▼
┌─────────────────────────────────────────────────────────────────┐
│                       Data Layer                                 │
│                                                                   │
│  ┌───────────────┐ ┌───────────────┐ ┌───────────────┐         │
│  │  PostgreSQL   │ │     Redis     │ │   InfluxDB    │         │
│  │  (User/Port   │ │  (Cache/Queue)│ │(Time Series)  │         │
│  │   folio)      │ │               │ │               │         │
│  └───────────────┘ └───────────────┘ └───────────────┘         │
│                                                                   │
│  ┌───────────────┐ ┌───────────────┐                           │
│  │  Blockchain   │ │    Object     │                           │
│  │    Nodes      │ │   Storage     │                           │
│  │  (ETH/BSC)    │ │   (S3/MinIO)  │                           │
│  └───────────────┘ └───────────────┘                           │
└─────────────────────────────────────────────────────────────────┘
                           ▼
┌─────────────────────────────────────────────────────────────────┐
│                  External Services Layer                         │
│                                                                   │
│  ┌───────────────┐ ┌───────────────┐ ┌───────────────┐         │
│  │Alpha Vantage  │ │   CoinGecko   │ │   Chainlink   │         │
│  │  (Stock Data) │ │ (Crypto Data) │ │   Oracles     │         │
│  └───────────────┘ └───────────────┘ └───────────────┘         │
└─────────────────────────────────────────────────────────────────┘

---

Component Diagram

Core Components

graph TB
    subgraph "Backend Services"
        API[API Gateway<br/>api_routes.py]
        AUTH[Auth Service<br/>auth.py]
        PORT[Portfolio Service<br/>portfolio_service.py]
        RISK[Risk Management<br/>risk_management.py]
        FIN[Financial Services<br/>financial_services.py]
        BLOCK[Blockchain Service<br/>blockchain_service.py]
        WS[WebSocket Service<br/>websocket_service.py]
    end

    subgraph "Data Pipeline"
        FETCH[Data Fetcher<br/>data_fetcher.py]
        STOCK[Stock API<br/>stock_api.py]
        CRYPTO[Crypto API<br/>crypto_api.py]
        STORAGE[Data Storage<br/>data_storage.py]
    end

    subgraph "AI/ML Engine"
        PRED[Prediction Service<br/>prediction_service.py]
        LSTM[LSTM Model<br/>lstm_model.py]
        FEAT[Feature Engineering<br/>feature_engineering.py]
        EVAL[Model Evaluator<br/>model_evaluator.py]
    end

    subgraph "Databases"
        PG[(PostgreSQL)]
        REDIS[(Redis)]
        INFLUX[(InfluxDB)]
    end

    API --> AUTH
    API --> PORT
    API --> RISK
    API --> FIN
    API --> BLOCK
    API --> WS

    PORT --> PG
    RISK --> PG
    FIN --> PG

    FETCH --> STOCK
    FETCH --> CRYPTO
    FETCH --> STORAGE

    STORAGE --> INFLUX
    STORAGE --> PG

    PRED --> LSTM
    PRED --> FEAT
    LSTM --> EVAL

    AUTH --> REDIS
    API --> REDIS

Loading

---

Data Flow

1. User Authentication Flow

User → [POST /auth/login] → API Gateway
  → Auth Service → Validate Credentials (PostgreSQL)
  → Generate JWT Tokens → Cache Session (Redis)
  → Return Tokens → User

2. Price Prediction Flow

User → [GET /predictions/stocks/AAPL] → API Gateway
  → Check Cache (Redis) → [MISS]
  → Prediction Service → Fetch Historical Data (Stock API)
  → Feature Engineering → LSTM Model → Generate Prediction
  → Cache Result (Redis, TTL=1h) → Return Prediction → User

3. Portfolio Update Flow

User → [POST /portfolios/{id}/transactions] → API Gateway
  → Authenticate (JWT) → Portfolio Service
  → Validate Transaction → Update Portfolio (PostgreSQL)
  → Recalculate Metrics → Update Cache (Redis)
  → Notify via WebSocket → Return Success → User

4. Real-Time Data Flow

External API → Data Fetcher (Celery Task)
  → Parse & Transform → Data Storage → InfluxDB
  → Trigger WebSocket Event → WebSocket Service
  → Broadcast to Subscribed Clients

---

Module Structure

Backend Module Mapping

Directory	Purpose	Key Files
code/backend/	Main backend application	app.py, api_routes.py, models.py
code/backend/data_pipeline/	Data fetching and processing	data_fetcher.py, stock_api.py, crypto_api.py
code/backend/services/	Business logic services	quant_analysis.py
code/ai_models/	ML model training	train_prediction_model.py, advanced_ai_models.py
code/blockchain/	Blockchain contracts and integration	contracts/*.sol, smart_contracts.sol
web-frontend/	React web application	src/
mobile-frontend/	React Native mobile app	src/
infrastructure/	DevOps and deployment	kubernetes/, terraform/, ansible/

Backend File Organization

code/backend/
├── app.py                      # Flask application factory
├── api_routes.py               # REST API endpoints
├── models.py                   # SQLAlchemy database models
├── auth.py                     # Authentication service
├── portfolio_service.py        # Portfolio management
├── risk_management.py          # Risk calculations
├── financial_services.py       # Financial analysis services
├── blockchain_service.py       # Blockchain integration
├── websocket_service.py        # Real-time WebSocket
├── security.py                 # Security utilities
├── config.py                   # Configuration management
├── data_pipeline/
│   ├── data_fetcher.py         # Data fetching orchestration
│   ├── stock_api.py            # Stock data API
│   ├── crypto_api.py           # Crypto data API
│   ├── data_storage.py         # Data persistence
│   ├── feature_engineering.py  # Feature extraction
│   ├── lstm_model.py           # LSTM prediction model
│   ├── prediction_service.py   # Prediction API
│   └── model_evaluator.py      # Model evaluation
├── services/
│   └── quant_analysis.py       # Quantitative analysis
└── tests/
    ├── test_endpoints.py       # API endpoint tests
    ├── test_integration.py     # Integration tests
    └── validate_pipeline.py    # Pipeline validation

---

Technology Stack

Backend Stack

Component	Technology	Version	Purpose
Framework	Flask	2.3.3	Web framework
ORM	SQLAlchemy	2.0.21	Database ORM
Database	PostgreSQL	12+	Relational database
Cache	Redis	5.0+	Caching and queues
Task Queue	Celery	5.3.2	Background tasks
WebSocket	Flask-SocketIO	-	Real-time communication
Authentication	PyJWT	2.8.0	JWT tokens

AI/ML Stack

Component	Technology	Version	Purpose
Deep Learning	TensorFlow	2.13.0	Neural networks
Deep Learning	PyTorch	2.0.1	Alternative framework
ML Framework	scikit-learn	1.3.0	Traditional ML
Data Processing	Pandas	2.1.1	Data manipulation
Numerical	NumPy	1.24.3	Numerical computing
Time Series	Prophet	1.1.4	Time series forecasting

Frontend Stack

Component	Technology	Version	Purpose
Framework	React	17.0.2	UI framework
State Management	Redux	-	State management
UI Library	Material-UI	5.12.1	Component library
Charts	Chart.js	3.9.1	Data visualization
Web3	web3.js	1.10.0	Blockchain interaction

---

Deployment Architecture

Production Deployment (Kubernetes)

┌─────────────────────────────────────────────────────────────┐
│                        Load Balancer                         │
│                  (Ingress Controller)                        │
└─────────────────────────────────────────────────────────────┘
                           │
        ┌──────────────────┴──────────────────┐
        │                                     │
   ┌────▼────┐                          ┌────▼────┐
   │Frontend │                          │  Backend│
   │  Pods   │                          │   Pods  │
   │(Nginx + │                          │ (Gunicorn)│
   │ React)  │                          │          │
   └─────────┘                          └────┬─────┘
                                             │
        ┌────────────────────────────────────┼────────────────┐
        │                                    │                │
   ┌────▼────┐                         ┌────▼────┐     ┌─────▼─────┐
   │PostgreSQL│                        │  Redis  │     │ Celery    │
   │StatefulSet│                       │  Pods   │     │ Workers   │
   └──────────┘                        └─────────┘     └───────────┘

Scaling Strategy

Component	Scaling Type	Min Replicas	Max Replicas
Frontend	Horizontal	2	10
Backend API	Horizontal	3	20
Celery Workers	Horizontal	2	10
PostgreSQL	Vertical + Replication	1 master	2 read replicas
Redis	Vertical + Clustering	3	6

---

Security Architecture

Security Layers

1. Network Security

   • HTTPS/TLS encryption
   • VPC isolation
   • Firewall rules
   • DDoS protection

2. Application Security

   • JWT authentication
   • Rate limiting
   • Input validation
   • SQL injection prevention
   • XSS protection

3. Data Security

   • Encryption at rest (AES-256)
   • Encryption in transit (TLS 1.3)
   • Password hashing (bcrypt)
   • Audit logging

4. Compliance

   • KYC/AML tracking
   • GDPR compliance
   • SOC 2 controls
   • Audit trails

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Performance Optimization

Caching Strategy

Data Type	Cache Location	TTL	Invalidation
User Session	Redis	1 hour	On logout
Market Prices	Redis	5 minutes	On update
Predictions	Redis	1 hour	On retrain
Static Assets	CDN	1 day	On deploy
API Responses	Redis	15 minutes	On data change

Database Optimization

• Indexes on frequently queried columns
• Connection pooling (10-20 connections)
• Read replicas for analytics queries
• Partitioning for time-series data
• Regular VACUUM and ANALYZE

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Monitoring & Observability

Monitoring Stack

Application → Prometheus (Metrics) → Grafana (Dashboards)
           → ELK Stack (Logs)
           → Sentry (Errors)
           → Jaeger (Tracing)

Key Metrics

• Request latency (p50, p95, p99)
• Error rate
• Throughput (requests/second)
• Database connection pool usage
• Cache hit rate
• Model inference latency
• WebSocket connection count

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For implementation details, see:

• Developer Guide
• Infrastructure Guide
• API Documentation