[nedelchev_1992]

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

[nedelchev_1992]

Hi Petko,

I have some question about the Walk Forward Validation/Optimization. The case is: I run the reactor with some acceptance criteria and Walk Forward Validation only. After that I check the strategies one by one and run the single Walk Forward process and I see that not all strategies full-fill all 3 criteria (Segments validation, Common Acceptance Criteria and Is strategy better). Why this is the case? Why in the reactor they show successful passed validation?

Second question. When we run the a single Walk Forward test for a particular strategy, should we EDIT the strategy only if all 3 criteria are valid/green?

Third question. If we EDIT a strategy with the Walk Forward Optimization and run it once again with Walk Forward Optimization, it is very likely that the optimization will produce much worse results. Does it mean that our EDITED strategy now is over-optimized?

Thanks a lot

Nedko

[Author]

Posts