The Strategy Normalizer in EA Studio aims to polish your strategies and improve their efficiency.
According to our experience, a strategy that consists of a small number of elements works much better. Furthermore, when you use indicators the thing that matters the most is to set intelligible parameters for them.
Remove Take Profit - this feature checks if your strategy performs better without a Take Profit.
Remove needless indicators - the Normalizer removes the indicators that do not have a positive impact on the strategy. By doing so, it speeds up your strategy and it saves it from over optimization.
Reduce Stop Loss – it is likely to improve your strategy if you choose a smaller SL. Then, the trader will have smaller losses and a better risk/reward ratio.
Reduce Take Profit – this option is good for strategies that reach the take profit faster.
Normalize indicator parameters – the creators of the technical indicators have tested them over time and have come up with their best parameters. We advise you to use the default settings.
How the Normalizer Works
The Normalizer provides you with the “Remove Take Profit” option. For instance, if you have a TP of 5000 pips on GBPJPY it is almost impossible to ever hit it.
Therefore, the Normalizer is going to test your strategy's performance without a take profit. There is no “Remove Stop Loss” feature since it is very dangerous to trade without a SL.
These are the steps which the Normalizer goes through:
1. It makes a modification step. First, it removes the Take Profit temporarily.
2. Performs a strategy backtest.
3. If the setting “Use the Common Acceptance Criteria” is activated, then it validates the strategy against them.
4. It calculates the quality of the strategy as per the “Search best” option.
5. The Normalizer applies the modification if the end result is a valid strategy with an equal or better performance than the original. If we have a different outcome, then the Normalizer turns back the original strategy.
6. You can continue to step 1 or exit. (in this case, you exit because the “Remove Take Profit” option has just one step).