Prompting

To harness the full potential of Ziplime’s AI in creating algorithmic trading strategies, it’s essential to write clear and detailed prompts. Here are some guidelines and examples to help you craft effective prompts for strategy development

Guidelines for Writing Prompts

1. Be Specific: Clearly define the trading logic, including entry and exit conditions. Specify the type of assets or markets you’re interested in.

2. Include Timeframes: Mention the desired timeframes for your strategy, whether it’s intraday, daily, weekly, etc.

3. Define Indicators: Specify any technical indicators or fundamental metrics you want to incorporate.

4. Clarify Objectives: State your performance objectives, such as maximizing return, minimizing risk, or achieving a specific Sharpe ratio.

5. Add Constraints: Include any constraints such as risk tolerance, position limits, or transaction costs.

6. Iterate and Refine: Start with a simple prompt and gradually refine it based on the AI’s output and your strategic goals.

Examples of Effective Prompts

Example 1: strategies based on technical indicators

Moving Average strategy

Create a strategy for trading U.S. stocks using a moving average crossover technique. 
Use a 50-day simple moving average (SMA) and a 200-day SMA. 
Enter a long position when the 50-day SMA crosses above the 200-day SMA, and 
exit the position when the 50-day SMA crosses below.

Example 2: strategies based on fundamental data

Earnings-Based Strategy

Design a strategy for futures trading based on earnings 
announcements. Enter a position in futures contracts 
if the company reports earnings that exceed analyst expectations 
by more than 10%. Exit the trade one day 
after the earnings announcement. Incorporate a stop-loss of 2% and take-profit of 5%.

If you don’t like result of strategy or if you have error while backtesting try to regenerate zipline engine code