10. Optimization of EA Pt.2

Transcript:

Hello, dear traders. In this video, we'll continue the optimization process. If you remember, we have chosen the parameters, the most effective, in two thousand and twenty three. And the next step, which to check the efficiency of the system. It may be overall back test.

Let's say since to seven and eight till nowadays.

If you remember, I was telling you that it's much more better to make, year by year tests and then put all of these, details into the table to understand if, like, the strategy is bringing you consistent profits.

In this video, I'll explain you why it it is, important.

I've just made a back test, for the last fifteen years. And, I got the following results. You can find them in the graph, first of all, and you can see that huge period of time. Let's say since two thousand and eight till two thousand and fifteen, the gross was very, very, very small.

So it means that, around seven years, the system was not bringing profits at all. And then it started bringing profits. So The first thing you need to understand if you have a chart like this that there may be some yes like this. So it doesn't mean that it will be growing all the time.

And you also must consider it before trading it on the real account. The second thing is that you can, from the global test, you can find the global drawdown to understand if the system is safe enough. Cause when you have a profit in two thousand and two or two thousand and three. It is okay with a small drawdown of ten percent.

As we saw on the previous tests, like, we were making, profits with, some, like, smaller drawdowns, like, around ten for example, with, the same parameters.

But historically, you can find that the maximum drawdown grew up to sixty percent. So what does it mean? It means that, in the history, we had a situation went from, let's say, ten k on our account, we had a loss of minus six k. And, it it's not really comfortable.

Obviously, that the, like, huge profit we gained for these, fifteen years, around, like, nineteen millions from one million dollars. Like, it's okay, is fantastic. And actually, it just justifies its, like, it justifies this, drawdown we actually had.

But, you need to understand that even, the strategy with a huge profitability, it may be quite risky. So sixty percent. So, the next step after you found a parameter that is interesting for you you can do actually two things. First thing is to make a global test to understand if it's okay And then to make separate tests for, two thousand and, twenty two, twenty one, two thousand eleven, and so on and so on and so on.

Or you can actually start the optimization, from two thousand and eight till two thousand and twenty three. But it will not be so precise. It will take much more time. And, my advice is to pay attention to the last year's last five years more than the, like, first five years of the test because market, markets constantly change.

And, the recent dynamics, it shows the, that, this bot is optimized for the, real market conditions. But still, you must remember that you may have some yes that are not profitable or that shows some small profit. So basically, regarding the optimization, This is all I wanted to to tell you now.

Speaking about how to start using the robot.

To use the robot, obviously, your trading platform should be online.

And to do it, you need to rent a VPS server or a virtual private server.

And in the next video, I'll give you some main points about how to rent a server and how to start trading.