Optimization and re-optimization of forex robots Wednesday December 8th, 2021 – Posted in: Uncategorized

On the way to the grail – how to create a non-outdated forex robot

From this article, you will learn a few simple rules that will help you correctly optimize the Forex robot and how and when to reoptimize the robot in fully automatic mode, thereby significantly increasing its profitability and reducing slippage. Practically any forex robot built on the patterns of the forex market needs to be optimized and re-optimized in the future. If the basic idea of the strategy is built on small market patterns, then re-optimization is needed more often. There is no need to optimize forex strategies based on Latency Arbitrage or Hedge Arbitrage, but even trading systems of statistical arbitrage need the initial Optimizations. Every forex trader faced a problem when the results of trading forex robot, Those who had been over-profitable as recently as last month were beginning to deteriorate. This is often due to the fact that the market is changing and the parameters on which it has been configured a few months ago, the Forex robot is no longer relevant to today’s realities. The experienced trader starts to reoptimize his Forex robot, but what should be a re-optimization criterion?

So let’s suborder the four steps:

  1. Initial optimization of forex robot
  2. Testing forex robot
  3. Real account trading
  4. Re-optimization

Initial optimization of forex robot

Virtually every forex robot has external variables that can be optimized on historical data in MT4 or MT5 Strategy Tester. First, you need to define a history gap for optimization and testing.  The gap depends on which trading system underlies the trading robot, but you can also get away from how often the robot opens orders. If your robot trades frequently, for example, it is a scalping robot Forex, then for optimization, there will be enough plot of history in 9 months or 1 year. For robots that trade less frequently, this historical data gap should be longer. The last 20-40% of the history gap should not be used in optimizations, as they will be used to test the correctness of the completed forex optimization robot.

Testing a Forex Robot

After optimization, we test the entire history and compare The yield curve of the site on which the optimization was made and of the site on which was reserved for testing. If visually there is no difference or advisor reserved for testing sites show better results – optimization was successfully executed. If the difference in profitability is significant, you need to either search for the optimal parameters and test for a longer time span or change the range/ steps of optimizing the parameters of the forex robot.

Real account trading

Once you agreed that the optimization was successful, I would recommended to install forex robot on real account and wait for 3-4 orders, after that, stop a robot and do a test in the gap of history on which were opened, orders and compare how the test results match the results of real trade.

Re-optimisation of forex robot – on the way to the grail

It may seem like this is the best forex robot, but in reality, the robot will very soon require re-optimization, and the trader’s task is to determine when to re-optimize the Forex robot. Here the main idea is not to make mistakes, because too often re-optimization of LCD can make the Forex robot work poorly. In my opinion, a series of unprofitable orders may serve as a criterion for optimization. If you will analyze the results of your initial optimization and see that the number of consecutive loss orders did not exceed 3, if the 4th consecutive order is a loss in a real account, this should serve as a signal for the re-optimization of your Forex robot.

Can you put on the Forex robot itself making the decision to reoptimize and The re-optimization itself without interrupting the work of the expert himself?

Yes, of course.

Our company BJF Trading Group Inc. has developed an auto-optimizer of strategies that allows you to start optimization of the Forex robot on the specified schedule or on the criterion for the appearance of a series of loss orders (the number of loss orders in the series, after the appearance of which, the optimization of the Forex robot will begin, is set up by the trader. Auto-optimizer strategies can work with both MT4 advisors and MT5 Advisors and there is no need for the source of the Forex code of the robot, i.e

It is enough to have ex4 or ex5 executable files. The optimization starts automatically without interrupting the Forex robot and after, As the auto-optimizer strategies will get newly optimized parameters, they will be applied to the forex robot also in fully automatic mode, and the robot will continue work with new optimized settings. This approach allows you to increase profitability and reduce drawdown, due to feedback, of almost any forex robot.