Once an EA is developed and optimized for the first time (or if an EA is purchased with default setfiles for that matter), I may feel tempted to re-optimize when I see the EA starts to have a losing streak, but its default parameters MAY still be functioning well (as drawdowns happen).
Is it advisable to hold onto the default settings (since it was initially optimized/backtested for, say, 10-yr period)? Or is it better to re-optimize periodically (like every year) - isn't this somewhat curve fitting?
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John Winsome Munar:
Once an EA is developed and optimized for the first time (or if an EA is purchased with default setfiles for that matter), I may feel tempted to re-optimize when I see the EA starts to have a losing streak, but its default parameters MAY still be functioning well (as drawdowns happen).
Is it advisable to hold onto the default settings (since it was initially optimized/backtested for, say, 10-yr period)? Or is it better to re-optimize periodically (like every year) - isn't this somewhat curve fitting?
When trading a strategy live, you need to know how that strategy has performed in the past. So you get the answer from the backtest. Drawdown, time drawdown, loss streak, average loss etc. Then you can check if the strategy isn't working anymore and you need to re-optimize.
Thank you
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