Optimization Of Trading Systems Part 2

By in Intro to Forex on April 11, 2019

if the system yields good results on a considerable quantity of the markets, it is completely not obligatory that you traded it in all these markets for diversification. You can have ten trading systems, each of which was profitable in 15 markets within last six years, and to use each of them for trade only in one market. It will allow you to trade 10 diversified markets using on each of them system without adjustment. Theoretically it is acceptable not less, than to trade of one of these systems on all 10 markets.


This principle permits such type of optimization which allows you to trade one system with use of various kits of the optimized parameters for each market. Those who want to optimize each market separately can do it without being afraid of adjustment under the historical data.

Here is how the process looks. Solve what market you want to trade. For greater safety it is necessary to choose only those markets which appear profitable at testing with one kit of parameters (value of the given system by default) within at least five years. Let’s assume that your system trades with profit of 12 markets using the same parameters. It will be area of your research.

You can optimize system individually for each market. To begin with we try to change parameters so that as much as possible to increase profit and will reduce losses on each of the markets. Most likely 12 various kits of parameters of optimization as a result will turn out. After that there comes the most difficult part.

It is necessary to take each of 12 kits of the optimized parameters and to test them for all 12 markets. It is necessary to pay attention to that whether it keeps the given kit of the optimized parameters property of an initial kit to remain same profitable in 11 markets all others. If the given kit of the optimized parameters trades with profit all 12 markets, you can be assured that there was no adjustment of parameters under the historical data. It is possible to use the given kit of the optimized parameters for trade of that market for which they were optimized.

If the given optimized kit badly works in other markets, it is a warning signal about availability of adjustment under the initial data. You should repeat optimization of the given market, trying to find such kit of the optimized indicators which it will be profitable to work and in other markets.

For those who want to participate in forex trading must start from learning the basics of currency exchange market to make sure you do not have problems with this industry.

There is another option – you can hire professional traders to do this job for you – read more about forex investment here. Also make sure to look for the knowledge in a good forex book.


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