8. Preparation an EA for optimization

Transcript:

Hello, dear traders. In this video, we'll speak about the optimization of, the expert advisors. If you remember, on the last video, we were back testing one of the top advisors for the last three years two thousand and twenty three, twenty two, and twenty one. And if you remember, the last, backtest we made, it was, two thousand and twenty one with the result of, seven hundred a thousand dollars profit from a million dollars deposit.

Now we'll speak about how to get the optimized results.

Optimization is a feature of the tester of strategies that allows you to find better parameters to get bigger profits and to decrease your drawdowns. Depending on the expert properties.

They can be different parameters like stop loss, take profit, trailing stop, breakeven point different indicators, only sell or only buy and many many other things, that usually hidden because if you if you'll take a look at the number of the indicators that are considerate to make an entry point, here, like it's, it's really huge, but, there are no parameters about this indicator. So you cannot change the like, parameters of an ACD or of RSI and so on. So you can only change some things that are connected to that are related to the money management. So, for example, we have an option, the maximum power of expert, if we're gonna put it through and make the same back test as we as we did.

You'll see that the result will be different. And, when we switch to the report, even even to the graph, you can see that the graph is completely different.

In the report, you'll see that our profitability will be twenty twenty one. Let's call it like one.

The profitability will be really, really brilliant. More than million x and seven hundred thousand dollars.

Of course, the drawdown will be big. It will be around two two hundred, thousand dollars. But in terms of profitability, when we had set seven hundred thousand dollars. And now we have million and almost seven hundred thousand dollars.

It does make sense. To actually use this feature or at least to investigate it deeper because the drawdown of two hundred and the drawdown of one hundred. Yeah. We have a difference.

Like, it's it's obvious, but if you speak about the drawdown in percentage, at the moment when this drawdown occurred is like seven point five and here it's ten percent. But the profitability is more than a hundred percent bigger. So it is an interesting option.

We also can change some other things. Let's say we're gonna put it like from fall or from true to false or simply reset it to the default parameters, we can choose like break even point, from false to true. And let's see what will happen if we'll be using this point. So, here, we have a lot of things that we can manually do and check the results here. As you can see, let's call it two thousand and twenty one too.

You'll see that our, profitability felt, from seven hundred a thousand to two hundred thousand. And our, actually, our drawdown grew to fourteen percent to one hundred and sixty one k. So this thing may be not working in this year. It doesn't mean that it doesn't work at all. So to make this process of optimization, of all of the parameters more convenient, you can use the following thing. So you need to go to inputs. For example, if you liked the option of, like the maximum power of expert, you need to simply press the checkbox.

And if we have only binary structure through a false, You will have start, step, and stop, step will be blank. Start will be false and stop will be true. It's normal. For example, we have permission to trade buy or sell.

We can test it. Okay. Or maybe selling trades bring us more profit in buying trades are bringing more loss maybe vice versa. We don't know.

So we're gonna put this parameters to the optimization as well. BRAkeven enabled. Like this year was not profitable, but who knows? Maybe it will be better, with the combination of some other parameters.

We don't know how it works. For example, we have break even point of fifty.

So it means that we can actually, like, change it like, from start to step, we can make a step of let's say ten and put here a hundred Yeah. And we're gonna have an optimization of this parameter and we also can like change many, many, many other parameters. I will not be using all of them cause the more parameters, we choose, the longer optimization process we're gonna have so we're gonna check only, like, some, some of these parameters. And, in the next video, I'll show you how does the optimization work.