Begin with a strategy specification
An automated system needs a defined instrument, timeframe, risk model, trade-management rules and failure conditions. AI cannot fix an ambiguous specification on its own.
What AI can accelerate
AI can assist with boilerplate, documentation, explaining code, test cases and comparing candidate implementations. This may reduce repetitive work during research and prototyping.
The testing ladder
Code review is followed by compilation, basic unit-style checks, historical testing and forward observation. Check execution conditions, transaction costs and broker behavior.
Avoid optimization traps
Many attractive backtests result from overfitting. Separate research and validation samples, document parameter searches and challenge ideas on unseen market regimes.
Keep the human in the loop
Do not deploy generated code or strategy changes without review. AI output can be incorrect, insecure or inappropriate for the intended account.