Evolutionary computation in forex

Walking Forward Analysis: More Robust Development with More Realistic Expectations
schema of a computational

It is no mystery that one of the most important challenges in the development of trading systems is to be able to get a good estimate of future risk and profitability. The first approach to do this is to back-test the strategy across a large segment of time (usually 10 to 20 years) but this approach is plagued with problems that become more and more apparent as the degrees of freedom within trading strategies start to increase. Within this post I want to talk to you about some of our experience in the area of trading system development, why the above approach is problematic and why walk forward analysis can help us eliminate many of the above mentioned issues.

Our journey starts with a very important question. How do I know the amount of profit and – more importantly – risk that I should expect from a trading strategy in the future? The obvious answer would be to carry out simulations of the strategy over a long period of time in the past and then determine – through these results – what the expected boundaries for profit and risk might be going forward. The problem with this approach comes when you consider the inherent plasticity of strategies, natural to the degrees of freedom contained within them. How do you know if your strategy matches some ever-present aspect of the market or if it just happened to profit from randomness in the market through what is nothing but random chance?

Source: Mechanical Forex

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Dollar Plunges to Record Low Against Euro

2004-11-05 11:47:01 by ---

NEW YORK -- The dollar dropped to record lows against the euro on Friday, succumbing to negative sentiment and erasing all of the U.S. currency's earlier gains following a robust U.S. October employment report.
Technically driven trading also played a role in the dollar's fall.
The euro surged above $1.2900 and then breached the prior record high around $1.2927 hit in February, reaching new record peaks around $1.2950, according to Reuters data.
The dollar index, a measure of the U.S. dollar's performance against a basket of currencies , fell to a nine-year low. The U.S. currency also fell to six-month lows against the yen and 6-1/2 month lows against the Australian dollar.
Traders were struck by the dollar's inability to sustain a robust rally fueled by the...

I gave up watching tv about 3 - 4 years ago.

2005-04-11 21:02:11 by FellowTraveler

I now use my tv for watching rented movies or programs I taped and collected before.
I do miss the history channel and other educational stations,
but over all I have more time for other activities the likes of this forum etc.
Now back to an issue of money :)
So called "free trade" works for this country under the guide lines of national security,
though the cost of this free trade is becoming very heavily taxed :)
This monopoly of money(currency) we are allowed to use - is controlled as it's tradable value-
One of the hidden taxation is inflation,
a million has the buying power of just a half million within less than a decade.
This fact keeps us on the treadmill of buy and selling (trading-investing),
else our savings soon...

SB Corp dividends aggregate to P1.37B  — Philippine Star
This includes foreign currency exchange (forex) risk cover fee of P76.1 million, guarantee fees amounting to P18.9 million, withholding taxes on placements at P21.4million and taxes and licenses amounting to P11.7 million. Though at present SB Corp. is …

Members of Bank Fraud Ring Sentenced in $3.7 Million Scam  — Federal Bureau of Investigation

... information presented in the public record: Between 2006-2007, Whitted operated a company known as “Mastermind Events” in Conyers, Georgia, which was supposed to host seminars, including foreign currency exchange (FOREX) trading training events.

Related posts:

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  4. Evolutionary algorithms