Product Review: TradeStation 9 Walk Forward Optimizer by Donald W Pendergast Jr.
TradeStation is a company with instant name recognition in the world of system trading and development, real-time scanning, and market analysis. The company was one of the first system development/charting/scanning platform vendors to transform itself into an online stock, bond, option, and commodities broker, able to put the purchasing power of brokerage clients into direct integration with the array of system development, charting, and scanning powers in this flagship trading product.
Given that there are an overwhelming number of tools, processes, and features available in TradeStation 9, this particular review is going to concentrate on one of the newest and most potent features in TradeStation — the Walk Forward Optimizer (Wfo), which analyzes how profitable and robust a given trading system is. I’ll begin by using one of my silver futures swing trading systems as the guinea pig for the testing, taking you through the process of taking a trading idea, and then optimizing it with the Wfo, on data it has not yet been exposed to. After we complete that task, we’ll take a look at the Wfo performance summary statistics for the system.
FOUNDATION OF TRADING
The basis for all the testing and analysis here is a silver swing system, sometimes holding a position from as little as a few minutes to as much as four days. The version of the system used in this review is meant to show how an already proven system can be fine-tuned and evaluated to help ensure that it remains profitable in the months and years to come.