As you know, overcoming emotion and human bias is one of the hardest things to do in investing. We all know to stick to a plan - easy to say and hard to do!

I'm sharing with you this week my secret prompt engineering trick that helps me think through trades like the above rationally: AI context profiles...

What is a context profile?

A context profile is a stored document that contains structured information (in JSON format ideal for a computer to read) about your strategy, persona, etc.

When this document is uploaded with your prompts, the AI tool will be highly personalized and aligned with your objectives. The idea is that AI isn't limited by intelligence, but rather limited by context.

My context profile document specific to my crypto trading framework

Specific to investing use case, context profiles are great for these situations:

If you trade high volatility assets (eg crypto, small caps, tech stocks, etc) where emotions can interfere with judgement, using AI to debate you with context profiles can give you greater objective clarity
If you run a team, giving your analysts your context profile lets them think about investments with your investing style.
If you run a strategy where you have very wide top of funnel (eg Point72 style where you cover hundreds of names per person), you can screen for trades at much higher volume with this.
If you have no idea what you’re doing, you can train a context profile under an investing legend (eg Buffett) to analyze trades with their framework.

Below, I'll show you:

How to create a context profile highly specific to your strategy
An example of how to use a context profile once you create it

How to Create Your Context Profile JSON File

I highly recommend to create different context profiles specific to different asset classes or trading styles. Specificity is key to having surgical precision with AI.

For me, I have separate context profile documents trained on what I look for in tech equities, crypto equities, large indices, and digital assets (my areas of specialization).

To create this context profile, use ChatGPT o-3 to interview you about your strategy.

Steal my example prompt below that I used to kick off my crypto context profile:

I want to create a context profile JSON specific to my crypto trading heuristics and framework. Can you please interview me to help create this?

ChatGPT will give you a very long list of questions. It is imperative you answer this as thoroughly as possible.

From this, you'll get an output written in JSON (which is a simple code structure easy for computers to read).

Paste this into a notepad and save it - example below:

I'm attaching two supporting documents for you to study from:

Download my crypto context profile:

https://docsend.com/view/adx26wb8ycz27rzr

My GPT chat log to create this context profile: https://chatgpt.com/share/68695972-fe28-8001-be49-36cba80ec231

How to Use Context Profiles

I'm sure you're asking "What do I do with this document now?"

Short answer: Upload it alongside any chats you have with LLMs related to this investing style.

Use cases can include:

Screening for new positions
Finding entries for this position
Reunderwriting investments
Having a sparring partner who is your emotionless clone

For example, I uploaded this crypto context profile alongside a chat to debate me on payments related altcoins based on my own framework.

Here was the prompt I used alongside the uploaded JSON file:

I am considering finding entries into $XRP and $XLM. I have given you my context profile on my typical trading strategy for crypto. Can you please debate or interview me to guide me through if I should actually consider a long position in these based on my framework? If there is any data point that you cannot access do not guess, ask me to find data for you if you cannot access (because crypto data is fairly niche). Ask me any questions you are unsure of.

Read the full conversation here - very objective results:

https://chatgpt.com/share/6869597f-8c58-8001-97f3-50e65037a90a

New Resources from Me:

11 Prompt Engineering Tips for Finance | Dave Wang

Sell-side Style Deep Research Prompt Template | Dave Wang

100 Perplexity Finance Use Cases | Dave Wang

How to Automate a VC Analyst | Dave Wang

If you made it this far, forward this to a friend who might find this helpful

My Secret Prompt Engineering Trick