Why EAs Fail? - page 2

[Mohammed Abdulwadud Soubra]

Alejandro Cuartas:
Is true, will be great if we can use variable spread in backtests.

Of course

[Attila Moricz]

It's not just the spread.

Past performance doesn't guarantee future success. It's everywhere: sports, business, life.

Overoptimising a strategy for a set period of time in the past, will more likely fail in the future.

[Alejandro Cuartas]

Attila Moricz:

It's not just the spread.

Past performance doesn't guarantee future success. It's everywhere: sports, business, life.

Overoptimising a strategy for a set period of time in the past, will more likely fail in the future.

Good point, i think they call it "curve fitting"

[Alejandro Cuartas]

Until now we have:

 

-Bad algorithm

-Bad modeling quality 

-Variable spread 

-Curve fitting

 

I will add: Order execution time