8 Ways to Improve your Backtesting and Optimization Process | Trading Strategy Development
The processes of backtesting and optimizing are difficult to get right, with one of the main issues being over-fitting. This video highlights 8 areas that can be used to improve the effectiveness of the process including:
Identifying a true trading edge
Improving statistical significance and sample size
The dangers of over-fitting
How to avoid over-fitting
Coding a multi-symbol expert advisor in MQL5
Optimization design and walk forward phases
Optimization profiles best-practice
Performance metrics
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Further videos covering more detail of the issues raised in this video can be found here:
Identifying a true trading edge: • 1.1) Why a true trading edge is a scarce c...
Improving statistical significance and sample size: • 2.1) Using Statistical Power Analysis to i...
The dangers of over-fitting: • 3.1) Has your optimization overfitted your...
How to avoid over-fitting: • 4.1) Practical Steps to avoid Over-Fitting...
Coding a multi-symbol expert advisor in MQL5: • 1.1) Why you REALLY need to start using Mu...
Optimization design and walk forward phases: • 7.1) Best-Practice Walk Forward Design for...
Optimization profiles best-practice: • 8.1) Using Optimization Profiles for Effec...
Performance metrics: • 9.1) The Importance of Choosing Robust Per...
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This is Episode 25 in the Darwinex 'Trader Evolution' Playlist: • Trader Evolution | From trading as a hobby...
Video Contents:
00:00 Backtesting, optimizations & over-fitting
00:31 Why Darwinex?
01:26 8 of the most important aspects of backtesting and optimizations
02:41 1 - A Trading Edge
03:59 2 - Statistical Significance and Sample Size
05:29 3 - The Dangers of Over-Fitting
06:08 4 - How to Avoid Over-Fitting
07:09 5 - Developing a Multi-Symbol EA (Expert Advisor)
08:45 6 - Optimization Design and Out-of-Sample Walk Forwards
09:37 7 - Interpreting Optimization Profiles
10:02 8 - Optimization Performance Metrics
11:03 Summary and Next Episodes
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-d...