Question - Forex Forexqna Fibonacci Chart +1

How to optimize newer trading strategies?

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Rebecca Gross
Answered 9 months, 3 weeks ago
<p id="isPasted">Trading strategy optimization is a process or methodology of finding the optimal parameter settings of your strategy. In addition, you can learn how sensitive the parameters are to changes in the settings.</p><p>With today’s computing power, a software program can easily be coded to find the best optimization for a certain strategy. It’s literally done in seconds and the software needed is cheap and good.&nbsp;</p><p id="isPasted">Here is an example of strategy optimization in trading: you might want to find the best moving average crossover system for the gold price. The system works like this:</p><ul style="box-sizing: border-box; margin: 0 0 var(--global-md-spacing); padding: 0px 0px 0px 2em; list-style: disc; color: rgb(45, 55, 72); font-family: Inter, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><li style="box-sizing: inherit;">When the close crosses above the …</li></ul>
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Ender Gurses • Lived in Konya
Answered 3 weeks, 3 days ago
<p id="isPasted">To optimize newer trading strategies, you must define clear trading rules and parameters, perform rigorous backtesting and forward testing, and use statistical and advanced techniques to adapt to current market conditions. This comprehensive process helps to avoid pitfalls like overfitting and ensures the strategy is robust enough for live trading.&nbsp;</p><p><strong>Foundational steps</strong></p><p>Before refining a new strategy, build a robust foundation with these steps:&nbsp;</p><ul><li>Define a trading idea. Clearly state the market behavior or pattern you aim to exploit. Keep the initial concept simple and straightforward.</li><li>Select appropriate indicators. Choose indicators that align with your strategy's idea. For example, use …</li></ul>
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