Skill (Claude Code)
A reusable instruction module (often a SKILL.md file) that gives an AI agent domain-specific methods, checklists, and decision frameworks. Skills improve reasoning quality but do not execute actions by themselves.
A Skill is a reusable knowledge module that teaches an AI agent how to approach a specific type of task. In many setups, this appears as a SKILL.md file loaded into project context.
In trading workflows, Skills help convert one-off prompts into repeatable operating systems.
What Skills Add That Tools Alone Do Not
Execution tools answer “how to act.” Skills answer “how to think before acting.”
A strong Skill can encode:
- pre-trade checklist logic
- risk and sizing rules
- scenario analysis templates
- post-trade review formats
This improves consistency across sessions and team members.
Skill vs CLI vs MCP
| Layer | Purpose |
|---|---|
| CLI | broad command-level action interface |
| MCP | structured typed tool interface |
| Skill | domain reasoning and decision framework |
Without Skills, agents can still execute. But execution quality often becomes prompt-dependent and inconsistent.
Example in This Site’s Ecosystem
The most visible example is Uniswap AI Skills, which package domain-specific workflows for Uniswap v4 operations.
This demonstrates how protocols can publish knowledge layers, not only API layers.
How to Use Skills Well
- Start with a narrow scope (for example, swap planning only)
- Encode explicit risk constraints in the skill
- Require an execution confirmation gate outside the skill
- Add post-trade review prompts to improve continuously
This turns the skill into a durable workflow component rather than a static note.
Common Failure Modes
- Treating skill output as guaranteed signal quality
- Forgetting to define hard risk boundaries
- Writing skills that are too broad and vague
- Never revising skills based on observed failures
A good skill is versioned, reviewed, and iterated.
FAQ
Are Skills only useful for advanced users?
No. Beginners often benefit the most because Skills provide structure and reduce random, inconsistent prompting.
Can I create private custom Skills?
Yes. Many teams maintain internal Skills tailored to their strategy, constraints, and reporting requirements.
How often should a Skill be updated?
Update when assumptions break, tools change, or post-trade reviews reveal recurring process errors.
Related links: