I don't rely much on out-of-sample backtesting. Rather, I optimize over the
recent period (like the last 6 months or so), and trade live what I believe
to be superior strategies.

On Tue, Mar 15, 2011 at 12:32 PM, Klaus <[email protected]>wrote:

> Dear Nonlinear,
>
> did you also retest outside the scope of the training set?
> I finally got around on the weekend doing this, but while I got
> improvement over the training set,
> I did not get very much improvement outside the training set..
>
> Klaus
>
>
> On Mar 14, 7:54 pm, nonlinear <[email protected]> wrote:
> > > I think, it is perfectly right to differentiate between up- and
> > > downward trends.
> > > By and large downward seems in general much faster.
> > > This would speak for a difference in parameters.
> > > I always wanted to look at what happens if you do separately optimize
> > > a upward-only
> > > and a downward-only strategy and compose it later (going flat if both
> > > are opposing)
> > > and compare this with two-sided optimization.
> >
> > I separated my log-short strategies into long-only and short-only, and
> > reoptimized. Got a big boost on all performance metrics. Don't know why
> this
> > idea never occurred to me in the past several years that I spent on
> strategy
> > design.
>
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