How to optimize Advisor
Unfortunately, the financial markets there is virtually no trade advisers, who would constantly give stable results and did not need to reconfigure or optimization.
For many beginners the concept of optimization may be associated with something complicated and confusing. In fact, optimization, a simple adjustment of the parameters under the prevailing conditions in the market.
For example, when a trader customize a specific indicator on the history, he is also involved in the optimization, but it just looks a little different.
Why is it necessary to optimize
The fact that the market is moving some kind of cycles and it is peculiar to gain certain speed and maneuvers that were repeated earlier.
Thus, many of the newcomers, and pros often encounter a situation where all the forgotten merges adviser suddenly starts to bring huge profits, and the latest development on the contrary began to merge the deposit.
This situation occurs not infrequently, however, the reason for her one – the market has changed. Of course, the visual changes in the market is quite difficult to see, however, if the pair started to reduce their traffic corridor or entered into a flat, counselor immediately react to these changes.
Actually, if a trader can tinker weekly strategy based on their observations and visualization on history, with advisers things are quite different. To optimize the use strategy tester, which is a function of the genetic algorithm, which is able to significantly speed up the optimization process.
The choice of optimization models
If you worked and faced with the strategy tester, you probably know that the tester performs as testing and optimization for one of the three models. The first model, and it is also the most inaccurate in the test plan, and in terms of optimization is to “Checkpoints”.
The essence of the model lies in the fact that at the time of formation of the price data are taken from the nearest time frame. Naturally because of the lack of data to optimize, using this model is simply impossible.
The second model, which is present in the strategy tester, called “Open Price“. Unlike the previous model, the amount of data is much superior, as used already formed bars. Unfortunately, if your advisor opens a position at a price, and can be closed within the bar itself, this approach is not for you.
If you do exactly sure that your advisor takes a position only on the close of the candle, then this model is right for you, and it is very fast.
The third and most accurate model is called the “Every tick”. The essence of the model lies in the fact that the treatment options are taken data from all time frames, which ensures the accuracy of optimization experts trading within a bar (scalpers scalpers). This optimization technique has the highest accuracy, but at the same time the most expensive.
Select model testing, you can use the pull-out menu in the strategy tester opposite form “Model”. Also, to start the optimization do not forget to set the checkbox “Optimize.”
Proper optimization algorithm advisor
Many newcomers, who for the first time faced with the optimization allows a huge mistake when he carried out the optimization of the current moment. This approach is comparable to the game of roulette, because you have no way to verify your settings, because they have already adapted to the forex market.
Instead, professionals use the test method striker. The essence of this scheme is to break up the historical period on optimization and testing. So, if you take the historical site of 100 percent, 709 percent stretch is performed optimization settings, while the remaining 25 received forward test your settings. Thus, you can see how your chosen parameters may behave in the future.
To proceed to the process of optimization should be set a number of criteria that will help to cut the unrealistic results optimization. To do this in the strategy tester enter the settings and switch advisor tab “Optimization”. In this tab you can specify the values for the minimum balance restrictions, the maximum profit as a percentage, the minimum level of margin and maximum drawdown, continuing losses and the continuous number of losing trades, as well as consecutive wins, won the continuous number of trades.
Then go directly to the expert inputs. As you can see in the settings there are two columns, namely value and Start. To optimize select the minimum value of the optimization parameter on line stratum, and the maximum value in the row. Also, do not forget to put a tick next to the line where the settings will be optimized.
Then click “OK” and start the optimization. Once you start the tester will give you the information on the time and number of samples. At the end of optimization, go to “Optimization Results” section and choose a couple of acceptable results.
After you select the parameters of acceptable conduct forward test of history and if he is satisfactory, you can safely put these settings. Remember, in large stretches you will do the optimization, the more stable will be the setting.
The life path of the trader (development stage) trader stage Every trader goes long or a short life, which, of course conditionally can be divided into 5…
How to choose the optimal lot size. Trading in the foreign exchange market involves consideration of many different nuances that affect the profitability…
RBNZ unexpectedly lowers rates Reserve Bank of New Zealand surprised markets by surprise, lowering its key interest rate by 25 bps to 2.25%. The head of…