Discussion of article "Combining trend and flat strategies"
So the optimisation (search of parameters) was carried out according to this criterion. The conclusion is absolutely incorrect.
So the optimisation (search of parameters) was carried out according to this criterion. The conclusion is absolutely incorrect.
So the optimisation (search of parameters) was carried out according to this criterion. The conclusion is absolutely incorrect.
And forward testing shows the possibility of making money on a non-optimised timeframe, i.e. making a profit on the real market after optimisation.
You have done a complete overshoot, where 10% of the best ones were run through forward. As a result you got a veiled optimisation on backtest+forward interval.
It would be completely identical optimisation over the whole interval (without forward) if Tester had run not the 10% mentioned above, but 100%. But it doesn't change the essence much.
You did a complete overfitting, where the top 10% were run through the forward. As a result, you got veiled optimisation by backtest+forward interval.
It would be completely identical optimisation over the whole interval (without forward) if Tester had run not the 10% mentioned above, but 100%. But that doesn't change the point much.
Yeah, I agree. The forward test didn't leak, and showed an opportunity to make some money. Did I state anything different in the article.
I meant "good sign". It can't be a "good sign" that the best optimisation result is in the plus side.
Forward should not be less than trayn
And what is the point of making a forward in Optimisation mode even with this interval ratio setting?
You can set the backtest interval to zero and the forward interval to whatever is available. And it will be no different from classical Optimisation.
What is the point of making a forward in the Optimisation mode even with such a setting of interval ratios?
none :) But maybe someone hasn't realised this yet and needs to figure it out for themselves
none :) But someone hasn't realised this yet and needs to figure it out for themselves
MQ either haven't figured it out or are promoting the myth because of competition considerations with other optimisers.
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New article Combining trend and flat strategies has been published:
There are numerous trading strategies out there. Some of them look for a trend, while others define ranges of price fluctuations to trade within them. Is it possible to combine these two approaches to increase profitability?
Price charts witness constant change of trends. Strong movements are followed by flat ones when the price starts moving within a narrow range. Traders choose their strategies based on the current market conditions. But how can we determine, which strategy to choose at the moment? A trend or a flat one?
The articles [1] and [2] consider various trend and flat trading strategies. It is easy to notice that applying a certain strategy begins with assessing the market situation. Both strategy types use different trend indicators to determine the market state. However, while trend strategies enter the market in the presence of a trend, the flat ones expect it to quiet down to open a position. Thus, our first approach when combining two types of strategy into a single Expert Advisor is the following: if there is a trend, use the trend-following algorithm, if there is no trend, use the flat one.
Author: Dmitriy Gizlyk