Hi Petko,
I watched the video very carefully and I want to double check if I understood the Walk Forward process correctly.
1. In the reactor, a strategy to pass Walk Forward Validation is needed only to pass the segments validation.
2. In the reactor, a strategy to pass Walk Forward Optimization is needed to pass all 3 criteria (Segments validation, Common Acceptance Criteria and Is strategy better).
3. If we choose to EDIT the strategy after successful Walk Forward Optimization (all 3 criteria are green), we expect to have a new not over-optimized strategy, because the EDITED parameters from the Optimization are based on 70% in-of-sample optimization based on the last segment and are tested on 30% out-of-sample. Additionally the Common Acceptance Criteria in-and-out-of-sample are applied on the whole back-test, which additionally speaks for not over-optimized strategy.
Please correct me if I am wrong. I am looking forward to see your comments.
Best,
Nedko