This paper proposes a novel approach to strategic bidding in competitive electricitcy markets that applies a context- based fuzzy model to a generator bidding system. the proposed approach allows the user to modofiy the weights in the model according to the user's perception of the criteria set in the context. in this approach,Dyanmic prpgramming,which can handle an inter-poroid optimization of the dispatch of a generator, is applied to the developed fuzzy model to for mulating the bid are disrussed. in addition, the proposed approach is validated by applying it to a market model developed on the market simulator. the performance of the proposed approach is compared to the performance of other technisques such as generic bidding strategies. the validations show that the proposed approach ha a significant advantage over genaric biding strategies: it is able to identify a critical market condition where there is an incentive for a generator to exercise its market power.