New article Expert Advisors Based on Popular Trading Systems and Alchemy of Trading Robot Optimization (Cont.) has been published:
In this article the author continues to analyze implementation algorithms of simplest trading systems and describes some relevant details of using optimization results. The article will be useful for beginning traders and EA writers.
Optimization of trading systems is widely discussed
in various literature and it would be illogical to write here in details
what can be easily found in the Internet. So here we will discuss in
details only fundamental simple ideas underlying the logics of
understanding the point of using the results of automated systems
optimization generally and the practical usefulness of optimization
I suppose you know that it is easy to upload into a strategy
tester an Expert Advisor constructed on the basis of even a relatively
simple trading system, after its optimization you can get amazing
testing results almost on any historic data that coincide with historic
data of optimization. But here a natural question occurs: "What does the
result have to do with the forecasting of an automated system behavior,
even if the result is tremendous but has been achieved after adjusting
the system according to history?"
At the moment this question is rather acute. One
of the reasons for this is that after first successful optimizations, a
beginning EA writer can get the wrong idea about a thoughtless use of
optimization results in live trading and the consequences of it can be
damaging. And the beginning EA writers can loose their own money or the
money of those who will use the ready Expert Advisor. So I will start my
article with this topic.
Author: Nikolay Kositsin