Anchored Walk Forward Optimization to Avoid Curve Fitting

Discussion in 'Automated Trading' started by fiverr, Sep 14, 2016.

  1. fiverr

    fiverr

    Gents,

    I have the following WFO result and it looks promising. What parameters should I pick and how often should I re-optimize my parameters?

    [​IMG]
     
    #31     Oct 27, 2016
  2. fiverr

    fiverr


    Many thanks, you are awesome.
     
    #32     Oct 27, 2016
  3. It's difficult to see what's going on here in your tabulated results. You have a 6-parameter optimization space, and I would suggest you find a way to visualize that parameter space. Below is how I do it, using the heat map. The x-axis is a strategy parameter, the y-axis is another strategy parameter, and the color indicates the system performance. The "hotter" the color, the better the performance.

    What you want to find is what I call a "plateau of elevated performance". That is, you want to see a sustained, continuous region of out-performance (as opposed to random spikes).

    [​IMG]
     
    #33     Nov 9, 2016