V.17:8 (373-377): System Optimization And Money Management by L. Zamansky, Ph.D., and M. Stolz
Product Description
System Optimization And
Money Management
Most traders focus on optimizing the trading system rules and ignore money management rules until after the system rules have been established. Here’s why you should test both sets of rules simultaneously.
Modern charting and analysis software for traders is equipped with the ability to optimize inputs for a trading system. To optimize inputs, first, a system must be run for each combination of input values within the set limits and with a given setup. The result is a table that has for each set of input values a corresponding set of performance characteristics. Second, one set of values with the best performance is chosen. The best performance does not mean the highest net profit or minimum drawdown; it can be any combination of acceptable performance characteristics.
Most traders focus on optimizing the trading system rules and ignore money management rules until after the system rules have been established. Here’s why you should test both sets of rules simultaneously.
Modern charting and analysis software for traders is equipped with the ability to optimize inputs for a trading system. To optimize inputs, first, a system must be run for each combination of input values within the set limits and with a given setup. The result is a table that has for each set of input values a corresponding set of performance characteristics. Second, one set of values with the best performance is chosen. The best performance does not mean the highest net profit or minimum drawdown; it can be any combination of acceptable performance characteristics.
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $495! |
| Save up to 54% by purchasing today. Limited time offer. By purchasing today you also receive your choice of one volume from the Professional Traders' Series (Volumes 1-17 or Charting The Stock Market) for FREE! NOTE: Use the "comment" field during checkout to tell us which book you would like to receive. |
| Click Here to Order |
| You save $502.31 plus the value of the book you choose over the regular price of these items. Offer ends soon. |