7 Ways to Optimize Your Trading Strategy

Using this tool can greatly enhance your Trading Strategy

I want to share with you today one specific feature of the FSBPro software, the optimizer. I believe that you will be amazed at the capabilities of this tool, I will attempt to demonstrate.

We will start with a randomly generated strategy which uses the Macd and a close and reverse option, meaning that each time the Mac crosses zero, the trade is closed and another entered going the opposite direction. No special reason for this strategy, I just wanted to have something to work with.

Here is the strategy as it is after generating for a few minutes


You can see that the balance is shown as 87,442. I am going to use the optimizer and see what happens when I optimize for a higher net.



This result may be entirely unsatisfactory based on other metrics, such as Win/Loss or Sharpe Ratio or….  Once this run is finished we will have a look at other metrics to see what can be improved..
Here is some results from optimizing for Net Profit



There was a gain in the net profit, but looking at some other metrics, this result is horrible. Notice the win loss and consecutive losses.

I will optimize the win loss, you can see the setting in the diagram.


I was able to improve the Win/Loss as well as the Net Profit, also the consecutive losses was reduced considerably


I do have a concern that the losses are awkward to deal with, I will now attempt to improve the Sharpe Ratio. I can see that I am going to have a problem with the equity curve, it is just not going to end up satisfactory.

After playing with the controls and attempting different things, I could see that the equity curve was not going to be satisfactory and I have discarded the strategy.

Here are the metrics on which the optimizer will work.



As you can see this optimizer is quite powerful.

I will work with a new strategy and post developments, hopefully better results than this.

Here are a couple more posts referring to Forex Strategy Builder.

http://boutiquetradingstrategies.blogspot.ca/2014/08/is-macd-worthwhile-for-strategy.html
http://boutiquetradingstrategies.blogspot.ca/2014/04/trading-strategy-based-on-bill-williams.html
http://boutiquetradingstrategies.blogspot.ca/2014/08/bill-williams-trading-strategy-part-4.html

Is Macd Worthwhile For a Strategy?

Watch how I develop a trading strategy using the Macd.

There are so many ways to use the Macd.I want to develop an automated trading system which will be based onthe Macd.

I will set up Forex Strategy BuilderPro to generate a system, using the Macd as the 'seed'. The generatorin FSB Pro is free to change many aspects of the Macd as it iscreating strategies with other indicators or price conditions.

Here is a look at how I started this: