Examples of optimization of trading algorithms
Many people believe that the result of trading in the financial market is primarily the amount of earned money or a whopping percentage of profitability. This is partly true, but do not forget about other necessary parameters, such as risks, stability of the trading strategy, as well as compliance with the basic recommendations of the fix api trading. Often, a high result is the result of an aggressive approach, which can also turn out to be a loss for the trader.
That’s why, I recommend everyone to optimize their current algorithm so that the positive result is put on a constant stream, rather than a variable value. Today, we will talk about how to do it.
First of all, we will define the most popular ways to optimize our trading and consider them in examples.
Popular ways to optimize the fix api trading:
1. Changing internal parameters of analysis elements
2. Adding multiple filters to improve analysis efficiency
3. Adjustment of risk and money management parameters
4. Combining trading signals into a single panel
5. Creating an algorithmic approach
These five key ways can optimize your trading strategy in the fix api forex market. They can also be used as steps to improve a simple system http://forexzzz.com/op/ . Let’s look at each individually to see how it can improve your trading.
Changing internal parameters of analysis elements
This parameter indicates how to start optimizing the algorithm directly from what it is. Thus, if you use technical indicators in your fix api trading, change the internal time parameters. Substitute larger data for analysis or decrease it. Also, some parameters can be viewed as far as they are combined with other elements. You can test these results on a historical movement and if you see the result, it shows that these new parameters generate more accurate trading signals, which means that you have reached the maximum.
Adding multiple filters to improve analysis efficiency
In addition to improving the already existing analysis elements, I recommend also testing by adding a few new parameters for determining the future value of the financial asset. Often, these can be patterns that confirm or deny the future value of the financial asset. So, if you trade in a trend, then such patterns as a flag, pennant or triangle will enable you to make additional transactions in the direction of the trend. Such patterns as reversal figures will indicate the likely moment of exit from the market.
Adjustment of risk and money management parameters
It often happens that the market takes our position for loss, and then goes to the predicted side. I’m more than sure that you’ve had such a situation, haven’t you? To avoid this situation, you should optimize the setting of stop loss levels. For I know cases when the transfer of SL to the large ranges on the contrary improves the profitability of the strategy. Therefore, notice how often you work with SL and analyze whether it was touch and departure in the right direction or the turn and yield level with losses will save capital.
Combining trading signals into a single panel
For manual trading, I recommend you to combine all signals of your strategy into a single panel that will display all current signals in one place. This will allow you to look at a combination of several elements and immediately make a decision about buying or selling a financial asset.
Creating an algorithmic approach
The trading robot will allow you to expand the time parameters of the trade and thereby the profitability from the fix api trading. The algorithm trades according to your own rules and if they are profitable, then in the long run the robot will become a source of passive income. You can also use third-party robots and combine them with your trading for risk diversification.>