A method for optimizing parameters - simple forex trading strategies that work

A method for optimizing parameters ~ simple forex trading strategies that work

Most trading systems have a number of parameters embedded, parameters such as the lookback period, the entry and exit thresholds, and so on. Readers of my blog (for e.g., here and here) and my book would know my opinion on parameter optimization: I am no big fan of it. This is because I believe financial time series is too non-stationary to allow one to say what was optimal in the backtest is necessarily optimal in the future. Most traders I know would rather trade a strategy that is insensitive to small changes in parameters, or alternatively, a "parameterless" strategy that is effectively an average of models with different parameters.

That being said, if you can only trade one model with one specific set of parameters, it is rational to ask how one can pick the best (optimal) set of parameters. Many trading models have a good number of parameters, and it is quite onerous to find the optimal values of all these parameters simultaneously. Recently, Ron Schoenberg published an article in the Futures Magazine that details a way to accomplish this with just a tiny amount of computer power.

The key technique that Ron uses is cubic polynomial fit of the P&L surface as a function of the parameters. Ron uses the VIX RSI strategy in Larry Connors book "Short Term Trading Strategies That Work" as an example. This strategy has 5 parameters to be optimized, but Ron only needs to compute the P&L for 62 different sets of parameters, and the whole procedure only takes 58 seconds.

Although Ron has confirmed that most of the parameters that Connors picked are close to optimal, he did find a few surprises: namely, that RSI of period 3 or 4 is significantly more profitable than the 2 that Connors used, at least in the backtest period.

Now, for a true test of this optimization, it would be helpful if Ron performed this optimization withholding some out-of-sample data, and see if these parameters are still optimal in that withheld data set. Since he didnt do that, we need to wait for another year to find out ourselves!

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Rapid Results Method - ebay forex trading system

Rapid Results Method ~ ebay forex trading system

Rapid Results Method is a Forex educational course by Russ Horn, who is regarded as a very knowledgeable, successful and respected Forex trader and educator. Russ has also been providing consultation to hedge funds, financial institutions and high net worth individuals trading in the currency markets.

The main selling point of this course is Russ new trading system that is able to make money faster than any other systems by staying ahead of market changes, giving you more accurate signals and precise entry points. As the name of the course suggests, the system performs rapidly by getting you into potentially profitable trades in not weeks, or even days, but almost immediately when you begin to trade with it. 

Rapid Results Method is a trend following trading system that offers several different entries during a trend. This means that if a trading opportunity is missed, there are others that can be taken. The system can be applied on any time frames, from 1 Minute to Monthly.

The course consists of 6 DVDs and a printed trading Manual as follows:

• DVD 1: Introduction to Forex - This is a comprehensive beginner course for new traders or even intermediate traders who want to refresh their knowledge and understanding of the Forex market. Topics covered include the most profitable currency pairs, the technical terms used in Forex trading, pips and spreads, brokers, lot size, margin and leverage, the major trading sessions and time frames, support and resistance, chart patterns, candlestick formations, peaks, valleys and trends, and the types of market orders. 
• DVD 2: The MetaTrader 4 Platform - The MetaTrader 4 (MT4) is one of the most popular trading platform among Forex traders, and Russ uses this platform for performing his trades and also throughout this entire course. This DVD will explain all you need to know to operate the MT4 platform easily and efficiently. Topics covered include the installation process and opening of an account, chart properties and tools, adding indicators and saving templates, drawing chart lines, placing orders, saving profiles, using the navigator panel and adding texts and labels.
• DVD 3: Components of The System - This DVD explains the rationale behind the Rapid Results Method trading system and the indicators that supplement it. You will learn about the different phases of the market as defined by different moving averages, the rules for entering into a trade, setting stop loss and take profit levels, and the use Russ Dynamic Positioning Indicator (provided as part of the course). 
• DVD 4: Trading The System - Following on from DVD 3, this DVD explains in detail how the Rapid Results Method is actually being applied and how to have the charts set up. You will learn the various trading techniques under the system, known as Ribbon Trade, Ghost Trade and Shark Trade, each with detailed examples and extensive explanation. 
• DVD 5: Live Trades - Having learned the system in DVD 3 and 4, Russ now provides a recording of his real live trades, demonstrating how the system is being used to generate profits in live markets. A total of 25 live trades are being shown here. 
• DVD 6: Webinars - In order to enhance the learning of the Rapid Results Method trading system, Russ has provided 3 webinars in this DVD. The first 2 webinars will be dealing with the charts setup and an explanation of the rules of the system with a Q&A session. And the third webinar deals with money and trade management which is equally, if not more important, than the trading system itself. 
• Trading Manual and Cheat Sheets - This manual is to be used in conjunction with the DVDs and provides clear and detailed instructions on trading the system. There are also 6 cheat sheets to be used as a quick visual check on whether to enter into a trade, based on the rules of the system. 

In order to supplement the Rapid Results Method trading system, Russ has included an indicator known as Signal Automation Recognition Alert, which will scan the charts for high probability trading opportunities and alerts the trader when a setup occurs. 

In addition to the physical items above, members will also be getting access to the Think Tank, which is a private members area. Here, you can have one-on-one interaction with Russ as well as other members to discuss about the trading system. You will also have access to the webinars conducted and have your questions and doubts answered. 

In addition to all the above, the course includes 5 bonus systems as follows:

1. The One Minute Scalper - A very simple yet very profitable scalping system for trading the lowest timeframe available on the MetaTrader4 platform - M1 (1 minute) chart using only 3 indicators.
2. The Golden Strategy - A strategy that has at least a 2:1 reward to risk ratio suitable for any time frame. 
3. The Secret Method - A very profitable and accurate strategy used by hedge fund traders on the major currency pairs with the lowest spread. 
4. Sea Trading System - An almost mechanical and conservative trading system, but highly profitable. 
5. The Super System - This system is suitable for every kind of trader: scalpers, swing traders, and position traders and can be used on any currency pairs, not just the major pairs. 

Rapid Results Method which is limited to only 750 copies, is priced at $999 and includes a 60-Day Money Back Guarantee. 

Note that this is a physical product. Therefore, except for the access to the private members area, the DVDs and Manual will be delivered to your doorstep. 

For more information about Rapid Results Method and videos of Russ Horns live trades, visit the official page here.

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