Agentic AI Notebook
Context Engineering
Phase 6Module 4 of 15

Context Compression

Windows are finite. Uncompressed traces push out the actual question.

Highlighting a textbook vs photocopying every page.

Visual Workflows

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Overview

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This turn

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Highlighting a textbook vs photocopying every page.

Key Takeaways

  • 1.Compression shrinks text to fit the budget while keeping ids, constraints, and decisions.
  • 2.Lossy is fine for dumps; lossless for policy and identifiers.
  • 3.Tool dumps are the first thing to compress.
  • 4.Measure tokens before and after.
  • 5.Windows are finite.

Real Example

Scenario

Compression: pack only what this turn needs.

What you would do

In Context Engineering, apply Context Compression to this scenario: Compression: pack only what this turn needs. Identify the inputs, run the technique, validate the output, and note one thing you would monitor in production.

Commands

Commands to Remember

  • Compression shrinks text to fit the budget while keeping ids, constraints, and decisions
  • Lossy is fine for dumps; lossless for policy and identifiers
  • Tool dumps are the first thing to compress
  • Measure tokens before and after

Cheat Sheet

Quick recap

quick ref
  • Compression
  • Budget
  • Don't dump

Common Mistakes

  • Skipping evaluation for Context Compression before production
  • No logging or tracing around context compression steps
  • Ignoring cost and latency implications