Table of Contents
Which 10 currency pairs would you recommend for 10 rounds?
When selecting currency pairs for 10 rounds of testing, consider pairs with diverse volatility and market behavior. This allows for a comprehensive and effective strategy across different markets. Examples of 10 recommended currency pairs include:
EUR/USD – A popular, highly liquid pair
GBP/USD – High volatility
USD/JPY – A pair correlated with the stock market
AUD/USD – Sensitive to commodities
USD/CAD – Linked to oil
EUR/JPY – Cross-regional correlation
GBP/JPY – High volatility
EUR/GBP – A European pair
NZD/USD – Correlated with commodities, similar to AUD
USD/CHF – Often used as a safe haven asset during high market risk periods.
You can adapt this list of currency pairs to suit your needs and the market behaviors you’re interested in.
Monte Carlo process results
For the Monte Carlo process results that did not pass the walk-forward matrix in the Ending section, should we re-apply them to Genetic evo or not?
If a strategy passes the Monte Carlo process but fails the Walk-Forward Matrix (WFM) in the Ending section, it may indicate that the strategy is vulnerable to real market changes. Although it may be resilient to random sampling (Monte Carlo), it may not adapt well to changing times (Walk-Forward Matrix). Considering reapplying this strategy in a Genetic Evolution:
Benefits of reuse:
You may find good elements within the strategy, but they require adjustment to fit changing market conditions. Using Genetic Evolution may help find parameter sets that are more flexible and adaptable.
Drawbacks of reuse:
If the strategy completely fails the WFM, it may indicate a fundamental problem within the strategy, which adjustments may not resolve. It may be a waste of time to attempt to refine a strategy likely to fail in the long run.
Recommended Approach:
Analyze the cause: Before reapplying the strategy to Genetic Evolution, analyze why it failed the WFM, such as overfitting or inability to adapt to changing markets.
Apply only parts: If parts of the strategy show promise, these parts can be incorporated or improved upon in a new Genetic Evolution process.
Create new conditions: In the new Genetic Evolution round, new conditions or constraints could be added to ensure the strategy passes the WFM or becomes more resilient.
Re-applying a strategy that failed the WFM to Genetic Evolution can be a good approach if proper analysis and improvement are undertaken. This can give the strategy a better chance to adapt and succeed in a wider range of market conditions.
