- You’ll integrate MLX-LM’s SmolLM3 model with your trading agent for lightning-fast local AI inference with superior efficiency.
- You’ll leverage SmolLM3’s 3B parameter architecture optimized for speed and accuracy in trading decisions.
- You’ll run safe paper trading using Foundry Anvil fork to test strategies before deploying to live markets.
- You’ll experience blazing-fast inference on Apple Silicon with MLX-LM’s zero-day SmolLM3 support.
- By the end, you’ll have a trading agent powered by one of the most efficient language models running entirely on your Mac.
Previous section: AI trading agent: ERNIE 4.5 local integration with MLX-LM
Project repository: Web3 AI trading agent
Remember that this is a NOT FOR PRODUCTION tutorial. In a production deployment, don’t store your private key in a config.py file.
About SmolLM3 and MLX-LM
SmolLM3 overview
SmolLM3 is Hugging Face’s latest small language model that excels in:- Efficiency — 3B parameters delivering performance comparable to much larger models
- Speed — Optimized architecture for rapid inference
- Reasoning — Strong analytical capabilities despite compact size
- Versatility — Excellent balance between size and capability for real-time applications
- Resource efficiency — Low memory footprint perfect for local deployment
MLX-LM Framework with Zero-Day SmolLM3 Support
MLX-LM provides zero-day support for SmolLM3 with Apple’s machine learning framework:- Native Apple Silicon optimization — Leverages M1/M2/M3/M4 Neural Engine
- Blazing fast inference — Thanks to Apple’s unified memory architecture
- Zero-day support — SmolLM3 compatibility available immediately
- 4-bit quantization — Further optimized for speed and memory efficiency
- Local execution — Complete privacy and no network dependencies
- Ultra-fast decision making
- Excellent reasoning-to-size ratio
- No API costs or rate limits
- Real-time market analysis capabilities
- Complete data privacy
Prerequisites
Before starting, ensure you have:- Apple Silicon Mac (M1, M2, M3, or M4)
- All dependencies from
requirements.txt
installed - Foundry installed (
curl -L https://foundry.paradigm.xyz | bash && foundryup
) - Chainstack BASE RPC endpoint
MLX-LM setup
Install MLX-LM
Install MLX-LM and dependencies:Download SmolLM3 model
Download the SmolLM3 4-bit quantized model (first run will cache the model locally):Configure MLX-LM integration
Editconfig.py
and add the complete MLX-LM configuration:
The SmolLM3 model is approximately 1.7GB and will be automatically downloaded and cached locally on first use. The 4-bit quantization significantly reduces memory usage while maintaining performance.
Understanding trading environments
The agent can run in two environments: Foundry fork mode (USE_FORK = True
)
- Safe for testing and experimentation
- Uses paper money (no real funds at risk)
- Real market data from BASE mainnet
- Real smart contract interactions
- Connects to:
http://localhost:8545
(Anvil fork)
USE_FORK = False
)
- Uses real money and real transactions
- All trades are permanent and irreversible
- Gas fees apply to every transaction
- Connects to: Your Chainstack BASE RPC endpoint
Always start with fork mode to test your strategies before using real funds.
Set up RPC endpoints for mainnet mode
If you plan to use mainnet mode (USE_FORK = False
), configure your BASE RPC endpoints in config.py
:
For fork mode (
USE_FORK = True
), the agent automatically uses http://localhost:8545
and these endpoints are not needed.Configure trading parameters
Set your trading wallet private key inconfig.py
:
Use a test wallet with minimal funds. This is for educational purposes only.
Start Foundry Anvil fork
Launch Anvil fork
Open a new terminal and start the Anvil fork of BASE mainnet:Fund your trading account
If your trading account needs more ETH, use Anvil’s built-in accounts:Run the trading agent
Basic trading mode
Start the agent in normal trading mode:Observation mode
Start with observation mode to see how SmolLM3 analyzes the market without executing trades:- Collect market data for 10 cycles
- Have SmolLM3 analyze each market state
- Generate an initial trading strategy
- Switch to active trading
Custom trading parameters optimized for SmolLM3
Modify trading behavior to leverage SmolLM3’s speed:Configuration optimization for SmolLM3
Inconfig.py
, you can adjust SmolLM3-specific settings to maximize performance:
SmolLM3’s combination of compact size and powerful capabilities makes it ideal for real-time trading applications where speed and efficiency are paramount.
SmolLM3’s efficient architecture combined with MLX-LM’s Apple Silicon optimization creates the perfect environment for high-frequency, low-latency trading applications.
Important: This is for educational and testing purposes only. Use test wallets with minimal funds. Never use production private keys. Monitor system resources during trading. The fork environment uses test funds, but configuration errors could affect real accounts.
Next section: AI trading agent: Fine-tuning overview