Expert optimization words
ok, so i have for instance an expert advisor that use the cross of emas as trade signals . we were using common ema values for this like 21 with 200 cross.
how do we know this are the best values for a given period like for example for the first 7 months of the current 2010 year ? How do we know what is the best pip amplitude to start trailing the stop on a given period ? To answer this question is for what we use optimization build in feature of metrader. it will test all possibilities for all the variables i want.
let’s say we want variable Period_MA_1 to goes from 1 to 200, and Period_MA_2 can go from 1 to 500, of course the normal variables we used (Period_MA_1=21 and Period_MA_2=200) will be also included at a given point of the optimization.
What are the best values for stop loss ? and for take profits ? All this question will be answered when the optimization process ends, it is a very long process but extremely powerfull as the computer will make thousands of tests for me.
We don’t know if what happened in the past will bee seen again in the future but if i can make an expert that is making money consistently in the last 4 or 5 years, with small drawdonwns, using the 90% feed data we will be closer to put a robot to trade live in the near future.
Tags: backtesting, meta trader, msql, optimization
