The all-caps `clod` file, created via the `init` command, stores project structure and user-defined rules. Unlike temporary in-chat instructions that get lost or degraded as the conversation continues, this file is referenced in every session, ensuring consistent behavior and enforcing project-wide guardrails.

Structure AI context into three layers: a short global file for universal preferences, project-specific files for domain rules, and an indexed library of modular context files (e.g., business details) that the AI only loads when relevant, preventing context window bloat.

To maximize an AI assistant's effectiveness, pair it with a persistent knowledge store like Obsidian. By feeding past research outputs back into Claude as markdown files, the user creates a virtuous cycle of compounding knowledge, allowing the AI to reference and build upon previous conclusions for new tasks.

Don't try to create a comprehensive "memory" for your AI in one sitting. Instead, adopt a simple rule: whenever you find yourself explaining context to the AI, stop and immediately have it capture that information in a permanent context file. This makes personalization far more manageable.

Claude Code's terminal-based interaction within a specific folder allows it to automatically read and reference local files. This makes "context engineering" drastically faster and more powerful than manually pasting information into a traditional chat interface, as the context is implicitly understood.

For recurring AI tasks, such as loading project-specific diagrams or switching models in Claude Code, create short shell aliases (e.g., 'cdi' for 'Claude diagram load'). This avoids retyping long commands and allows you to quickly switch contexts or modes.

Most users re-explain their role and situation in every new AI conversation. A more advanced approach is to build a dedicated professional context document and a system for capturing prompts and notes. This turns AI from a stateless tool into a stateful partner that understands your specific needs.

Anthropic's Claude models are specifically trained on XML. By structuring system instructions using XML tags (e.g., <role>, <instructions>), you align with the model's training data. This provides better organization and can unlock additional functionality and more reliable outputs compared to using plain text prompts.

Building a comprehensive context library can be daunting. A simple and effective hack is to end each work session by asking the AI, "What did you learn today that we should document?" The AI can then self-generate the necessary context files, iteratively building its own knowledge base.