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Optimization can have detrimental effects if the user searches for the combination of inputs based solely on the best performance over a period of historical data and focuses to much on market conditions that may never occur again. This approach is known as over-optimization or curve-fitting. Performance will not be the same in real trading, since historical patterns are highly unlikely to be repeated. | Optimization can have detrimental effects if the user searches for the combination of inputs based solely on the best performance over a period of historical data and focuses to much on market conditions that may never occur again. This approach is known as over-optimization or curve-fitting. Performance will not be the same in real trading, since historical patterns are highly unlikely to be repeated. | ||
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'''Optimization Methods''' | '''Optimization Methods''' | ||
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To learn more about optimization techniques, see [[<span style="color: red;">'''LINK'''</span>/0290_Optimization/22-9001_UnderstandingOpt.html name=""; |Understanding Optimization]] | To learn more about optimization techniques, see [[<span style="color: red;">'''LINK'''</span>/0290_Optimization/22-9001_UnderstandingOpt.html name=""; |Understanding Optimization]] | ||
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'''Running Portfolio Optimization''' | '''Running Portfolio Optimization''' | ||