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get_monte_carlo

Run a Monte Carlo simulation to generate probabilistic price ranges and downside risk for a stock over 30 days using Geometric Brownian Motion.

Instructions

Run a Monte Carlo price-path simulation for a stock over a 30-day horizon.

Use this tool when:

  • You need a probabilistic price range rather than a single point estimate.

  • You want to quantify downside risk (e.g., probability of a 10 % drawdown).

  • You are sizing a position using a volatility-adjusted scenario.

The simulation uses a GBM (Geometric Brownian Motion) model calibrated with the stock's realized volatility and current IV. 10,000 paths are run by default.

Parameters

symbol : str Exchange ticker in uppercase, e.g. "MSFT", "NVDA", "SPY".

Returns

dict with keys: symbol : str — normalized ticker current_price : float — spot price at simulation start mean_price : float — expected price at horizon range_90 : dict — {"lower": float, "upper": float} 90 % CI range_68 : dict — {"lower": float, "upper": float} 68 % CI prob_above_spot: float — probability (0–1) price is above current spot prob_10pct_drop: float — probability (0–1) of ≥10 % decline distribution : dict — histogram data: {"bins": list, "frequencies": list, "kde_x": list, "kde_y": list}

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
symbolYes
Behavior4/5

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

No annotations are provided, so the description carries the full burden. It discloses the simulation model (GBM), calibration (realized volatility and IV), default path count (10,000), and output structure. It does not mention resource limits or side effects, but it is sufficiently informative for a read-only simulation.

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

Conciseness4/5

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

The description is well-structured with clear sections (parameters, returns) and uses bullet points. It is slightly verbose but each part adds value.

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

Completeness5/5

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

The description completely specifies the tool's behavior, input, and detailed output structure. Since there is no output schema, the description compensates fully by listing all return keys. The context is sufficient for an AI agent to invoke it correctly.

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

Parameters5/5

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

With 0% schema description coverage, the description fully explains the single parameter 'symbol', giving examples of valid tickers and requiring uppercase. This adds value beyond the 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?

The description clearly states it runs a Monte Carlo price-path simulation for a stock over a 30-day horizon, using a specific verb and resource. It distinguishes from siblings like 'analyze_stock' or 'get_ai_prediction' by focusing on probabilistic range simulation.

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

Usage Guidelines4/5

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

The description provides specific use cases in a bulleted list: probabilistic price range, downside risk quantification, and position sizing. While it doesn't explicitly name alternative tools, the guidance is clear and relevant.

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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