Over-optimized tradingsystem?

• 03/20/2017 at 6:35 PM #29217
  Viktor Zetterblom

  Hello!
  What does it mean when a tradingsystem is over-optimized?
  How do you know it and what to do about it?

  Regards
  Viktor

  

  Viktor Zetterblom

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  03/20/2017 at 9:17 PM #29240
  Eric

  If it looks to good to be true it probably is

  always run new system on demo before risking any money

  

  Eric

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  03/21/2017 at 8:11 AM #29256
  Ronny

  I’m a beginner, but this is my view:

  Every system can be a winner if you optimize it, adjust the parameters to the history of data, and voila, you have a winner! If you “have to” optimize, do it on a set of data, and test it on another dataset. Then you may know if the system holds the water. Backtesting with a following Walkforward testing could be the way to go!

  

  Ronny

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  03/21/2017 at 2:30 PM #29294
  Viktor Zetterblom

  Ah i see.
  Thank you for your answers 🙂

  

  Viktor Zetterblom

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  03/21/2017 at 7:09 PM #29344
  Eric

  this is good news

  https://community.ig.com/t5/Charts/Walk-Forward-Test/m-p/12041#M350

  

  Eric

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  03/24/2017 at 1:50 PM #29757
  Cosmic1

  @Viktor Check this also:

  https://www.prorealcode.com/blog/avoid-equity-curve-fitting-with-probacktest-trading-strategy-optimisation/

  It is indeed good news that IG will have it soon, I don’t have it yet though and it’s Friday!

  

  Cosmic1

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