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volatility_analysis

Calculate annualised volatility of a currency pair using daily log returns over a chosen lookback period, with methodology matching FX options pricing.

Instructions

Calculate annualised volatility of a currency pair over the past N days. Returns daily std-dev of log-returns and annualised figure — same methodology used in FX options pricing.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
toYesQuote currency
daysNoLookback window in days (7–90, default 30)
fromYesBase currency
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Discloses computation method and return values clearly; no annotations provided, but description covers core behavior. Lacks mention of read-only nature or rate limits.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Single sentence, front-loaded with purpose and output, no redundant information.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

No output schema, but description specifies return values; covers key inputs and methodology. Missing edge cases (e.g., insufficient data) but acceptable for a simple tool.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage 100% with adequate parameter descriptions; description adds methodology context but no significant new semantic information beyond schema.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

Specific verb 'calculate' with resource 'volatility', clear output (daily std-dev and annualised), and methodology note differentiates from sibling tools like correlation_analysis and moving_average.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines2/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

No explicit guidance on when to use versus alternatives (e.g., correlation_analysis), no prerequisites or context for choosing this tool over siblings.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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