Hello, I would like to ask you a question. I have seen that you have been doing backtesting since 2017 or 2018 and my question is when I try to do an optimization for more years. Since 2013, for example, the DD has risen a lot. And as a general rule, good optimizations after 5 or 6 years fail. What do you think, is it necessary so many years?
Thank you
As you mentioned, I don't think there is a perfect strategy and in the end there is always a year that fails. What I think about a lot is how to change my strategy before something happens that leaves me without money, but I guess this will be the million-dollar question. ;-))
In 2019 we had the covid pandemic, the markets changed a lot. Markets change over time. It is difficult for a strategy to adapt to all the changes that happen in the world. Maybe 2 or 3 years of backtesting.
It depends on a lot of factors, from your strategy to how often you trade.
And there is no right answer here.
Longer period leads to overfitting, but allows to check different market phases.
Shorter period can miss some valuable events.
Google it a bit, it is very interesting topic.
Exactly! If you know when the market will change, you won't need anything else.