As some of you might have seen I’m currently working on tuning a strategy, so that I can backtest it automatically using my own python code. However I have come up with a bit of a quandary. What is the actual goal I am trying to achieve??
It might sound obvious we’re trying to get the best return, right? Well yes, but as well all know past performance isn’t future performance, so with that in mind, is it better to tune more maximum profit, or fewest losing trades??
Most likely the answer is somewhere inbetween, and different for everyone, but in how do you quantify what is a good result?
Don’t stress to much over your strategy bro. Those that can help won’t care cause we’re busy doing our own thing. Those that can’t well it doesn’t matter they won’t be able to do anything with it. And we all do the same thing anyway.
Performance as your suggested is subjective. But at the end of the day I think its about the realization of given up returns in favor of reducing risk. The best way to reduce risk and maintain return, diversify. So don’t get too focused on a return for one pair, work on appling your strategy successfully across many pairs, metals, commodities etc
Thanks that an interesting point, my strategy to improve my strategy is to get the best I can on one pair, then try it with others, if the strategy is reliable it show work on more than one strategy, if it fails, then it probably wasn’t that reliable anyway. Same goes for tuning on one time frame and testing on another.