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Tagged: #acceptance criteria
- March 10, 2020 at 10:03 #41200AndiParticipant
something that I figured out recently and I wanted to share.
I use the OOS when generating the strategies with the reactor, and after that, I filter the strategies with the min count of trades.
This way, when generating strategies, I am already testing the EAs for the last 20% of the data(simulating the Demo account) and when I filter them with the min count of trades basically I get the robust strategies.
Plus the Monte Carlo is there of course. This way I feel much more comfortable…but it took me nearly 2 years to realize what should I be using for my self.
Yes, I know Petko showed that in some of the courses, but maybe I was not ready to accept it 🙂March 17, 2020 at 0:56 #41967Luis GetinoParticipant
I’ve been using EA Studio since the beginning of the year, and I took most of the courses. The reactor here works most of the time daily and I have tested many combinations of acceptance criteria and timeframes and I played a lot with data horizons to simulate trading after the out of sample period.
I am not using normalization, it doesn’t seem to have much impact on the robustness of the strategies,
I am not using walk forward too, because 20% OOS with the minimum profit factor 1.2 or 1.1 seems to work better to generate robust strategies. Also this way I have the chance to delete strategies that have 1.1 OOS profit factor but are loosing recently or have huge stagnation.
I like to use minimum R Squared 70 and maximum consecutive losses 10, but what Andi said is really really important. There is a huge difference in miminum 300 trades or minimum 500 trades. The strategies with 300 to 500 trades are much less robust even if they passed Monte Carlo test.March 17, 2020 at 23:02 #41985Petko AleksandrovKeymaster
You are doing an excellent job! It is all about testing and trading with the EAs.
EA Studio, in the beginning, was much simpler without Walk Forward, Normalizer, and other tools. With time, many were added, which makes it a bit more confusing and time-consuming for the traders to find their method of generating strategies.
About the number of trades, that is absolutely correct.May 9, 2020 at 15:27 #47476ivonemistersParticipant
I am new in the Forum and trading, so I want to ask you what acceptance criteria is?
Sorry if this question is stupid, but it is hard for me because I am a beginner trader!
Have a great day!May 12, 2020 at 23:31 #47710Petko AleksandrovKeymaster
the Acceptance criteria are the rules that we want our strategies to fulfill.
For example, when we run the generator to show us new strategies, we can set acceptance criteria with Profit Factor 1.2.
This means that we will see strategies that have higher PF.
Cheers.May 16, 2020 at 15:13 #47809ivonemistersParticipant
Thank you for the answer, Petko!
Cheers!May 30, 2020 at 22:35 #49592VanParticipant
A quite interesting topic that should not fall down in the Forum.
I see that using the right Acceptance criteria is what gives us the start.
Recently I started to use the Min Count of Trades + R-squared. I think robustness and a nice balance line works great because it just makes sense…
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