Trading Wizard (LLM Assistant)

Get personalized trading bot recommendations and configurations using AI-powered analysis of your trading philosophy and risk tolerance

What is the Trading Wizard?

The Trading Wizard is Nimbus’s AI-powered assistant that analyzes your trading goals, risk tolerance, market outlook, and capital to recommend optimal trading strategies. It provides personalized bot configurations, risk management settings, and ongoing strategy optimization.

How the Trading Wizard Works

Our LLM-powered system combines market analysis, strategy optimization, and personalized recommendations to create tailored trading solutions.

Example Interaction: You: “I want to accumulate ETH over 6 months with $10,000, but I’m worried about high volatility”

Wizard: “Based on your goals, I recommend a hybrid approach: 60% Conservative DCA ($150/week) + 40% Signal-Enhanced Grid Trading during dips. This provides steady accumulation with opportunity for better average prices. Risk level: Low-Medium.”

Trading Wizard Process

Getting Started with Trading Wizard

Step 1: Trading Profile Assessment

The Wizard begins with a comprehensive assessment of your trading profile:

Personal Information

Trading experience and background:

• Trading experience level (Beginner/Intermediate/Advanced)
• Previous automated trading experience
• Preferred active involvement level (Hands-off/Moderate/Active)
• Time horizon for trading goals (Days/Weeks/Months/Years)

Financial Profile

Capital and risk assessment: - Total capital available for trading - Percentage willing to allocate to automated strategies - Monthly additional capital for DCA-style strategies - Maximum acceptable loss per trade and per month

Trading Goals

Objectives and expectations: - Primary goal (Accumulation/Income generation/Speculation/Hedging) - Target assets of interest (ETH, BTC, SOL, Altcoins, etc.) - Expected return targets (Conservative 5-15%/Moderate 15-30%/Aggressive 30%+) - Timeline for achieving goals

Market Outlook

Your market perspective:

• Overall market sentiment (Bullish/Neutral/Bearish)
• Volatility expectations (Low/Medium/High)
• Preferred market conditions (Trending/Ranging/Mixed)
• Specific market thesis or beliefs

Step 2: Risk Tolerance Evaluation

The Wizard conducts a detailed risk assessment:

Risk Capacity

Objective risk ability:

• Financial capacity to handle losses
• Diversification across other investments
• Income stability and emergency funds
• Investment timeline flexibility

Risk Preference

Subjective risk comfort:

• Emotional reaction to portfolio swings
• Sleep-at-night comfort level
• Previous loss tolerance experience
• Stress response to market volatility

Trading Wizard Recommendations

Strategy Selection Process

Based on your profile, the Wizard recommends from our strategy library:

Conservative Recommendations

For low-risk, steady accumulation:

• Smart Portfolio Rebalancer: Maintain target allocations automatically
• Conservative DCA: Regular, small purchases with protective filters
• Low-volatility Grid Trading: Tight grids in stable assets
• Signal-filtered strategies: Only trade on high-confidence signals

Typical profile: New to trading, steady income, long-term goals, low volatility tolerance

Moderate Recommendations

For balanced growth with managed risk:

• Multi-strategy portfolio: Combine DCA + Grid + Rebalancing
• Adaptive DCA: Vary purchase amounts based on market conditions
• Medium-range Grid Trading: Capture volatility in established assets
• Signal-enhanced strategies: Use multiple signals for decision making

Typical profile: Some trading experience, moderate capital, 6-12 month timeline

Aggressive Recommendations

For maximum growth potential:

• Advanced Signal Trading: Complex multi-signal strategies
• Wide-range Grid Trading: Capture large price swings
• Momentum strategies: Trend-following with leverage
• Martingale recovery: Position-sizing strategies (with strict limits)

Typical profile: Experienced trader, higher risk tolerance, active monitoring

Personalized Configuration

The Wizard generates specific bot configurations tailored to your profile:

Parameter Optimization

Customized settings:

• Position sizes based on your capital and risk tolerance
• Entry/exit thresholds aligned with your market outlook
• Risk management rules matching your loss tolerance
• Timeframes suited to your involvement level

Portfolio Allocation

Strategic distribution:

• Percentage allocation across different strategies
• Asset diversification recommendations
• Risk budgeting across strategy types
• Capital deployment timeline

Advanced Wizard Features

Conversational Strategy Building

Engage in natural conversation to refine your strategy:

Interactive Dialogue

Natural language strategy discussion:

Examples of Wizard interactions:

You: “I’m nervous about a potential market crash. How can I protect my portfolio?”

Wizard: “I recommend adding stop-loss conditions to your existing strategies and implementing a ‘cash cushion’ rebalancer that increases USDC allocation when volatility spikes above 80%. Would you like me to configure this?”

You: “My DCA bot is buying too often during small dips. Can we optimize this?”

Wizard: “I can add a volatility filter that only triggers DCA purchases when price drops exceed 5% from recent highs. This should reduce frequency while maintaining your accumulation goals.”

Strategy Education

Learning as you configure:

• Explains why specific settings are recommended
• Educates about risk-return tradeoffs
• Provides historical context for strategy performance
• Suggests additional learning resources

Market-Aware Recommendations

The Wizard incorporates real-time market analysis:

Current Market Regime

Adapt to present conditions:

• Identifies current market state (trending/ranging/volatile)
• Adjusts strategy recommendations accordingly
• Suggests timing for strategy deployment
• Recommends position sizes based on current volatility

Forward-Looking Analysis

Anticipate market changes:

• Considers upcoming events and catalysts
• Suggests strategy modifications for different scenarios
• Provides contingency planning recommendations
• Alerts for strategy adjustments needed

Using the Trading Wizard

Starting a Wizard Session

1. Access the Wizard: Navigate to Dashboard → Trading Wizard
2. Choose Session Type:
   • New Strategy Creation
   • Existing Strategy Optimization
   • Portfolio Review & Rebalancing
   • Market Condition Adaptation

Sample Wizard Conversations

Beginner Consultation

New Trader Guidance:

Wizard: “Welcome! I see you’re new to automated trading. Let’s start with your goals. Are you looking to accumulate specific cryptocurrencies, generate regular income, or explore trading for profits?”

User: “I want to slowly build a position in ETH and BTC over the next year with about $500 per month.”

Wizard: “Perfect for DCA strategy! Based on your timeline and budget, I recommend: 60% ETH DCA ($300/month) + 40$200/month) with weekly purchases. I’ll add protective filters to skip purchases during extreme volatility. This gives you steady accumulation with downside protection.”

Strategy Optimization

Improving Existing Strategy:

User: “My grid bot has been stuck in a range for 2 weeks. The market keeps trending up but my grid isn’t capturing the move.”

Wizard: “I see the issue. Your grid range ($1,800-$2,200) is below current ETH price ($2,350). I recommend: 1) Close current grid and realize profits, 2) Deploy a new grid from$2,200-$2,600, or 3) Add a trailing feature to your existing grid. Which approach fits your risk preference?”

User: “I like option 3. How does trailing work?”

Wizard: “I’ll modify your grid to ‘trail’ upward when price stays above the upper bound for 24 hours. The entire grid shifts up by 50% of the breakout amount, maintaining your profit capture while following the trend.”

Configuration Output

The Wizard provides complete, ready-to-deploy configurations:

Trading Wizard Recommendation:
┌─ Strategy Portfolio ─────────────────────────┐
├── Primary Strategy (60%): Conservative DCA   │
│   ├── Asset: ETH                             │
│   ├── Amount: $180/week                      │
│   ├── Schedule: Sundays 2 PM UTC             │
│   ├── Filters: Skip if >15% weekly volatility│
│   └── Duration: 52 weeks                     │
├── Secondary Strategy (30%): Portfolio Rebal  │
│   ├── Allocation: 70% ETH, 30% USDC          │
│   ├── Rebalance threshold: 8%                │
│   ├── Min interval: 72 hours                 │
│   └── Max trade size: $200                   │
├── Opportunistic Strategy (10%): Signal Grid  │
│   ├── Asset: ETH                             │
│   ├── Grid range: ±5% from current price     │
│   ├── Activation: Only on strong buy signals │
│   └── Duration: 2 weeks per activation       │
└── Risk Management ─────────────────────────  │
    ├── Max daily loss: $50                    │
    ├── Emergency stop: 15% portfolio loss     │
    ├── Weekly review: Enabled                 │
    └── Wizard check-in: Monthly               │

Ongoing Wizard Support

Performance Monitoring & Optimization

The Wizard continuously monitors your strategies and suggests improvements:

Performance Reviews

Regular strategy assessment:

• Weekly performance summaries
• Strategy effectiveness analysis
• Comparative performance vs benchmarks
• Suggested optimizations based on results

Market Adaptation

Dynamic strategy adjustment: - Alerts when market conditions change significantly - Recommendations for strategy modifications - Seasonal adjustment suggestions - Event-driven strategy changes

Learning Integration

Continuous improvement: - Incorporates your feedback and preferences - Learns from your manual overrides and decisions - Adapts recommendations based on your risk responses - Evolves understanding of your trading personality

Goal Tracking

Progress monitoring:

• Tracks progress toward stated goals
• Adjusts strategies if goals change
• Suggests timeline modifications if needed
• Celebrates milestone achievements

Wizard Notifications & Alerts

Stay informed with intelligent notifications:

• Strategy performance updates: Weekly summaries and milestone alerts
• Market condition changes: When conditions affect your strategies
• Optimization opportunities: When better configurations become available
• Risk warnings: If strategies exceed risk parameters
• Goal progress: Regular updates on achieving your trading objectives

Advanced Wizard Capabilities

Multi-Scenario Planning

The Wizard helps plan for different market scenarios:

Bear Market Preparation

Defensive strategy modifications:

• Increase cash allocations automatically
• Implement stronger stop-loss conditions
• Suggest DCA acceleration during major dips
• Recommend volatility-based position sizing

Bull Market Optimization

Growth-focused adjustments: - Reduce cash drag through rebalancing - Suggest momentum-following strategies - Optimize for capturing trending moves

• Recommend profit-taking levels

High Volatility Adaptation

Volatility management:

• Widen grid spacing automatically
• Reduce position sizes temporarily
• Implement volatility-based filters
• Suggest hedging strategies

Integration with Other Nimbus Features

The Wizard leverages all platform capabilities:

• Signal Integration: Incorporates latest signal analysis into recommendations
• Backtesting: Automatically validates recommendations against historical data
• Risk Management: Ensures all recommendations comply with your risk rules
• Portfolio Analytics: Uses portfolio data for holistic recommendations

Getting Maximum Value from Trading Wizard

Best Practices

Common Wizard Use Cases

Strategy Creation

Building new strategies:

• First-time strategy setup
• Adding new strategies to existing portfolio
• Exploring different strategy types
• Seasonal strategy deployment

Performance Issues

Fixing underperforming strategies: - Strategies not meeting expectations - High drawdown periods - Changed market conditions - Risk parameter adjustments needed

Goal Changes

Adapting to new objectives: - Timeline changes (shorter/longer) - Risk tolerance evolution - Capital allocation changes - Market outlook shifts

Market Events

Event-driven adjustments:

• Major market moves
• Economic announcements
• Regulatory changes
• Technical infrastructure updates

Next Steps

Start Your Strategy

Deploy your Wizard-recommended strategy.

Understand Signals

Learn about the signals powering Wizard recommendations.

Monitor Performance

Track your Wizard-configured strategies.

Risk Management

Set up the risk controls recommended by the Wizard.

The Trading Wizard is designed to be your ongoing partner in automated trading success. Don’t hesitate to consult it regularly as your goals, experience, and market conditions evolve.