AI-based Strategy Optimizer tool: share your exper pinion

FX Helper
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Joined: Mon Apr 01, 2013 3:55 am

AI-based Strategy Optimizer tool: share your exper pinion

#1 Postby FX Helper » Tue Feb 25, 2020 3:44 am

Greetings to the best community in the Universe!

Do you believe that your strategies are always perfect? If you think “of course, mate!” then you’re probably the richest fellow in the room but if you understand that your strategies can or must be better but you have no idea how to make it happen, then have a look at what we’ve prepared for you, guys.

Let’s say you have a good trading strategy but you are unaware of which parameters are ideal for the given currency and timeframe (because let’s agree, most strategies have at least several parameters). Say, we have a strategy that we called “Crossing Moving Averages”. It contains at least such parameters:
MA period 1
MA period 2
Alright, but which of these parameters are good for, say, USD/JPY, H1? You may think of running through all the possible combinations. Smart... but let’s imagine how much time it will take.

Say, we will check:
MA period 1 from 1 to 50 with the step of 5 — it is 10 combinations.
MA period 2 from 1 to 50 with the step of 5 — 10 more combinations.
StopLoss from 0 to 500 with the step of 25 — 20 more!
TakeProfit from 0 to 500 with the step of 25 — here we go 20 more jolly good combinations.

We multiply the number of combinations for each parameter (10*10*20*20) and in this way, we shall have to deal with 40 THOUSAND combinations. A pretty big number, isn’t it? Now imagine testing our strategy on 5 years of data and each strategy run with its set of parameters needs 1 minute to be calculated… it will take a WHOLE MONTH to process all of it.

We have a solution with the help of which it will take as much as just three hours to make the calculations.

For this, we’re gonna invite our good buddy — Mr. Artificial Intelligence. He will pick the perfect parameters for us with great pleasure.

AI is built into the core of our new Strategy Optimizer tool. As the name suggests, with this instrument you will be able to optimize your strategies to make them really hulked-up. It’s like you had a pistol but now you get a bazooka.

We will show you how it’s gonna be, but first things first. We are dying to see your comments in this very thread on what you think about this and how we can make it better for you.

So let’s go.

image4.png (68.57 KiB) Viewed 41706 times

As you may see on the screenshot above (which, by the way, is more a concept than the actual snippet from the program), we can choose the parameters we are interested to optimize and set the range for them. The other parameters (that don’t need optimization) shall have a fixed value.

Except for the AI-based algorithm, there is a non-AI-base one, it goes through every single combination and this what this process looks like:
image1.png (67.58 KiB) Viewed 41706 times

*each purple dot is a full run with the taken combination of parameters using historic data; the more dots, the more time it will take for the algorithm to calculate the results

And this is how the new AI-based algorithm makes it happen:

image3.png (85.56 KiB) Viewed 41706 times

What can we see from the latter screenshot?
Instead of picking every single number of every parameter, the AI-based algorithm shall pick a few initial combinations, analyze them and predicts what new combination can be most profitable based on the calculations.

It keeps testing new cleverly chosen combinations until it thinks that the most profitable combo has been found. You can stop the process if you are happy with the current best combination or want to change some settings in your strategy.

In this way, the algorithm will make not 40 000 combinations but, say, only 320.
The main purpose is to be as close to the most profitable combination as possible making big leaps instead of tiny steps and going slightly backward if the leap went too far.

Even such a time-consuming strategy we talked about can proceed in a matter of HOURS instead of WEEKS. Yes, this approach is slightly less precise than the old one but still, it’s precise enough to help you create a monster strategy in very little time.

Any time you can see the strategy statistics for any iteration of the whole optimization process:

image2.png (120.11 KiB) Viewed 41706 times

So in a nutshell, this tool will find the right parameters for your strategies to get the best result and you will not have to wait forever for this to happen.

Now, please share your thoughts with us!
What do you think of this new optimization algorithm? Would you use it?
How do you optimize your trading strategies?
What tools or resources do you use for this purpose right now?

What improvements do you think we could make to it? Would you like to test drive the AI-driven algorithm?

Guys, one more yet extremely useful for all of us thing!
Please, give us 1 minute of your time and fill this form for us:

This will help us to improve your strategy optimizing the experience.

See you later!
Truly yours,
Forex Tester team

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