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Tweaking Paramters in Trading

asked 2013-08-05 21:11:57 -0500

anonymous user


We are a group of developers who are about to launch an automated trading strategy in FX via multicharts. My question is for the more experienced automated traders. When do you actually change parameters? Specifically, do you ONLY change it when the system under performs or you can detect other issues that would make you address that before the drawdown.

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answered 2013-08-14 14:26:06 -0500

This is a far broader question than it might seem initially. It's very hard to answer it in a concise manner, but basically when you change your parameters you create a new 'supersystem': a set of rules that describe conditions when such a change should take place. Therefore instead of a single system you now have two systems, one processing the price data and the other processing the first one's output. Consider it from this point and I think you will come to a conclusion that the best systems are those that do not require changing parameters in any form (discretionary, reoptimisation, walk-forward, etc.) The best, the most consistent strategies we're running have worked already for over 10 years without any change of a single parameter.

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Asked: 2013-08-05 21:11:57 -0500

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Last updated: Aug 14 '13