Walk-forward testing is the antidote you need to avoid overly optimizing your backtest and making the best use of the available historic data. It’s widely recognized as the de facto method for backtesting and optimization.
I’m going through several ways to test and evaluate your algos. I will go through the different advantages and disadvantages of the different methods and end with a practical example of my preferred method which is Walk-forward testing in ProRealTime™. There are no perfect ways but there are methods to avoid.
Are you spending hours on backtestning but nothing on forwardtesting? Then you're an idiot🤡
#prorealtime #prorealalgos #walkforward #walkforwardoptimization #walkforwardtesting
00:00 introduction
01:05 Real money testing live
03:03 Simple optimization
04:45 Out-Of-Sample testing
06:01 Walk-forward testing
07:26 Pros & cons of the different methods
11:15 Manual Walk-Forward optimization in ProRealTime
17:30 Automatic Walk-Forward Optimization in ProRealTime CFDs are complex instruments, and trading them carries a high risk of rapid losses due to leverage. 75% of all non-professional customers lose money on CFD trading.
