Let's say you coded a moving-average crossover system. That is, you buy
when longer term average price is above the shorter term average price, and
sell otherwise. The immediate question is, "which moving average (i.e. what
time window size) are you going to use? In JBookTrader, instead of
guessing, you just set the ranges of the parameters, and let the optimizer
find the best combination of parameters. So, in the case of the crossover
system, we have Average(N) and Average(M), and N and M can vary, let's say
from 100 to 1000. Your code would then look like this:

addParam(N, 100, 1000, 100, 200);
addParam(M, 100, 1000, 100, 500);

By this code, you let the optimizer know that you are looking for the best
combination of N and M, where N and M can be as low as 100 and as high as
1000. Furthermore, you set the "step" to 100 to instruct the optimizer to
look in the range of 100..1000 with step 100 (i.e 100, 200, 300, 400, ...,
1000). After you find the best parameter values, you code them as the last
parameter in addParam() method. That makes it the actual parameter value to
be used in backtesting, forward testing, and trading

Makes sense?



Hi* *Eugene,

>
> In Sample Strategy, I found the following default parameters
>
>         addParam(PERIOD, 2200, 3600, 5, 3200);
>         addParam(SCALE, 5, 25, 1, 16);
>         addParam(ENTRY, 55, 120, 1, 92);
>         addParam(EXIT, -50, 0, 1, -21);
>
> From the signature of addParam(String name, int min, int max, int step,
> int value), I still couldn't figure out what the exact meaning of those
> parameters and data. So I hope you can tell me the meaning of each
> parameter and its associated 4 data.
>
> Thanks,
>
> Xuefeng
>
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