Is AI-assisted EA development actually improving Gold (XAUUSD) strategies or just making overfitting easier? - page 2

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Muhammad Minhas Qamar #:
If you're using AI, you have access to vast amount of knowledge that can genuinely help you come up with better strategies, instead of letting it wander in its own direction. Might aswell learn about quantitative finance, why are markets believed to be stochastic processes, why prices are believed to be random. Answers to such questions will deepen the understanding and approach towards strategy-creation. 
Good point, thanks for sharing your perspective. There is definitely a lot to learn on the quantitative side of things appreciate you adding to the discussion!
 
Daniel Andrew Clay #:
 

The Monte Carlo testing step is something I have not be using. I do backtesting and some forward testing but I haven't been systematic enough about stres stesting the randomness factor. That's clearly a gap I need to close.

The point about forward testing on a small live account for a longer period being the most critical step really resonates. I think a lot of people including myself early on treat a demo forward test as equivalent and it just isn't. The execution, the spread behavior, the slippage it all changes the picture.

Exactly, that’s the gap.

Monte Carlo really shows how fragile a strategy is, and live testing proves what actually holds up. Demo just isn’t the same, especially with XAUUSD. I totally agree on that point with you

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