V. 6:7 (240-243): SIDEBAR: More on optimization

V. 6:7 (240-243): SIDEBAR: More on optimization
Item# \V06\C07\SIDEBM.PDF
Availability: In Stock

Product Description

More on optimization

It may seem a daunting prospect to find the optimal combination of 10 trading parameters over an eight-year quote file on a personal computer, but it's not as bad as it sounds.

What Strategist does is to start with an initial strategy specified by the user, go through the quote file and compute the initial payoff.

Then it varies the first of the 10 parameters until it finds the value that gives the highest payoff—the optimal value for that parameter. It optimizes each of the remaining nine parameters in turn, then starts over again with the first parameter.

It may seem this process would go on forever, but it doesn't. After enough passes, Strategist reaches a point where the optimal values for the 10 parameters no longer change as it trades through the file. At that point, Strategist concludes it has converged on the optimal strategy and ends the search.

*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. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order