Using AI for Research and Building a Hypothesis

Goal

Write effective prompts that get specific, actionable research outputs from AI, rather than generic answers that waste your time.

Mistake This Prevents

Asking AI "What is the best crypto trading strategy?" and receiving a 500-word generic response that tells you nothing you didn't already know.

Core Concepts

The Anatomy of an Effective Trading Research Prompt A good prompt contains four elements:

1. Context: Who you are and what you already know
2. Specific task: Exactly what you want the AI to produce
3. Constraints: Format, length, what to exclude
4. Verification request: Ask AI to flag assumptions and limitations

Example: Weak vs. Strong Prompts

Weak: "What do you know about RSI divergence?" Strong: "I am a swing trader using daily charts on BTC. I already understand RSI basics. Give me a specific list of 5 conditions that make an RSI divergence trade higher-probability vs. lower-probability. Format as a comparison table. Flag any conditions where evidence is mixed or debated."

Weak: "Is DCA a good strategy?" Strong: "For an Indian retail investor with ₹10,000/month to invest in BTC, compare three DCA frequency variations: daily, weekly, and monthly. Show the trade-offs in terms of exchange fees, average cost effect, and transaction frequency. Flag assumptions you are making."

The "Role + Task + Format + Flag" Template

Role: "You are a crypto risk analyst reviewing my trade plan."
Task: "Review the following trade plan for logical errors and missing considerations: [paste trade plan]"
Format: "Use a numbered list. Under each item, explain the issue clearly."
Flag: "Note any assumptions you are making about current market conditions that you cannot verify."

Effective Use Cases for Research Prompts

• Tokenomics analysis: "Here is the tokenomics section of [project]. Identify the 3 biggest risk factors for token price based solely on this data."
• Backtest interpretation: "Here are backtest results [paste]. What are the statistical weaknesses in this sample?"
• Concept drilling: "I don't understand why supply and demand zones are different from support and resistance. Explain the distinction with a specific crypto example."

Checklist

• Use the Role + Task + Format + Flag template for all research prompts
• Provide context in every prompt ("I am a swing trader using daily charts")
• Always ask AI to flag its assumptions and limitations

Common Mistakes

• Single-sentence prompts expecting comprehensive, specific answers
• Not providing context (AI gives generic beginner answers without knowing your level)
• Taking AI output as final without asking for critique of the AI's own answer ("What are the weaknesses of your response?")

Fedha Tool Tie-in

FedhaAcademy's AI Prompt Library contains 50+ pre-tested, effective prompts for crypto research, trade plan review, tokenomics analysis, and strategy development, ready to copy and customise.