Great explanation, thx!

El 08/04/2011, a las 19:16, nonlinear <[email protected]> escribió:

> 
> 
> Let's imagine I want to create a LongDefender strategy for YM. Obviously ES 
> parameters won't work for this contract, so how do you set your parameters 
> ranges? 
> 
> Do you optimize it with wide ranges (taking a loong time) and then restrict 
> them by checking best performances?
> 
> 
> 1. I almost always optimize for best Performance Index. Resist the temptation 
> to look for the highest P&L and profit factors.
> 2. Optimizer takes advantage of all the CPUs on your machine. The very 
> powerful i7 chips are inexpensive these days.
> 3. The optimization period is important. On the one hand, you want to include 
> as much of the history as there is, but on the other hand, you don't want the 
> optimizer to "learn" from the distant past.
> 4. The min number of trades is important, too. If you set it too low, it's 
> highly likely that you will find strategies with astronomical profit factors, 
> but the statistical significance of those will be low. But if you set the 
> number of trades to be too high, you'll be forcing the optimizer to take the 
> trades.
> 5. The divide-and-conquer optimizer is fast. Notice that you can control its 
> speed vs accuracy (click the "Advanced" button)
> 6. After the D&C run is complete, you may want to inspect the optimization 
> maps and then run the brute force optimizer on a smaller sub-space of 
> parameters. I usually run my brute force optimization runs overnight, as they 
> may go through millions of strategies.
> 7. When choosing the final values of parameters, I'd suggest finding the 
> broad plateaus from the optimizations maps, i.e. the large areas of high 
> performance, as opposed to isolated peaks. If there are several of those 
> plateaus, you may want to define one strategy for each of those, and trade 
> multiple strategies. 
> 8. After you decided to settle on a specific set of parameters, don't forget 
> to hard-code them into your strategy and recompile.
> 9. Once in while (let's say every month or so), re-run optimization to 
> incorporate the latest data and to see if your best parameter set should be 
> adjusted.
> 10. When trading your final selection of strategies, be patient and do not 
> interfere with the strategies by taking manual trades.
> 
>  
> -- 
> You received this message because you are subscribed to the Google Groups 
> "JBookTrader" group.
> To post to this group, send email to [email protected].
> To unsubscribe from this group, send email to 
> [email protected].
> For more options, visit this group at 
> http://groups.google.com/group/jbooktrader?hl=en.

-- 
You received this message because you are subscribed to the Google Groups 
"JBookTrader" group.
To post to this group, send email to [email protected].
To unsubscribe from this group, send email to 
[email protected].
For more options, visit this group at 
http://groups.google.com/group/jbooktrader?hl=en.

Reply via email to