Hello traders,
I have uploaded a new video with another updated in EA Studio regarding the Out of Sample.
So far I was not a fan of using the OOS, but with this update the things changed a lot!
Please, find the YouTube video here: EA Studio Updates: Out Of Sample monitor and acceptance criteria
There are two major improvements with Out Of Sample in EA Studio.
First, we have a change in the Acceptance criteria:
Now we have the chance to generate the strategies with different acceptance criteria for the Complete backtest, for the In Sample Part, and for the Out Of Sample part.
This way we can use for example, 70% of our Historical data to generate strategies with predefined acceptance criteria. And with the rest 30% we will see simulated trading from EA Studio, as it was actually trading. NOW, here is the thing: We want to see only the strategies that actually profited in these 30%. So we can place precise criteria in the Out of Sample part.
In one of my courses I showed a trick how to avoid Demo testing, but we had to change the data range, than filter the EAs manually. Now it is possible to do it all automatically.
Second we have the Out of Sample monitor:
Here you will see detailed statistic for the complete backtest, the In Sample part, and in the Out Of Sample part.
In green you will see the same criteria that you have set in the Acceptance criteria. This shows that this is validated criteria. If it is in red, this means that the criteria was not validated with the minimum you have set in the acceptance criteria.
At the end of the video I show an example method how to generate trading strategies using the OOS in the acceptance criteria but in the Optimizer, not in the Generator. Combined with the r-squared new criteria, you will see great trading strategies.