An Example Of A Scholarly Source Is A Peer-Reviewed Journal Genetic or "Classical" Optimization

You are searching about An Example Of A Scholarly Source Is A Peer-Reviewed Journal, today we will share with you article about An Example Of A Scholarly Source Is A Peer-Reviewed Journal was compiled and edited by our team from many sources on the internet. Hope this article on the topic An Example Of A Scholarly Source Is A Peer-Reviewed Journal is useful to you.

Genetic or "Classical" Optimization

For some reason, many novice traders are afraid of using Genetic Algorithms (GA) to optimize their systems. However, it is clear that classical (exhaustive) as well as modern (genetic) optimization plays its role in strategy development. Today I will try to explain the differences that both types of optimization can offer and help you see that you should not be afraid of “genetics”.

The biggest advantage of genetic optimization is undoubtedly time. Especially if we have more parameters to optimize, we can literally shorten the whole process from days to just a few hours – which is a speedup worth thinking about.

Most traders who do not have experience with genetic optimization have the feeling that this shortcut makes the whole process look like “cheating”. After all, how is it possible that a GA can find solutions in 5-10% of the regular time, when the classical optimization process takes “full” time?

First, in a surprisingly large number of cases, genetic algorithms can find exactly the same combinations that classical optimization can. Second, it can find combinations that may differ. This can be useful, as I will explain shortly.

Let’s start with a simple comparison that shows the fairly realistic solutions found by the GA – how close or how far they are from the solutions found by classical optimization.

As an example in this article, I chose my system with 5 optimization parameters in total and used Walk Forward Optimization (WFO). This means I split the used data into 7 segments and performed 7 optimizations (one on each data segment) to have more samples to compare. The comparison came out as follows.

First of all, the parameters that the GA found were exactly the same as the classical optimization method – this was in more than half of the cases – 54%. That’s not bad at all, especially considering the 90-95% reduction in initial optimization time. After that, the parameters of the GA are found to be very close to those of the classical optimization technique – the result shows that there is no noticeable difference. The two groups together add up to 69%, which is quite a decent result. In almost 3/4 of the cases, the results obtained from the GA were the same or very close to those where classical optimization was used. However, GA found solutions in 5-10% time than originally required.

The remaining 31% of the results are fundamentally different, which may be a bit disturbing for some people. But as I will explain later, there is no need for this.

Usually, the reason for the difference between the results is that classical optimization looks for the so-called local optimum, while genetic algorithms are more inclined to find the global optimum.

What exactly are these?

Imagine you have two parameters – N1 and N2 – and you want to find the combination with the best profit.

The best combination shows that the profit in this case is at the level of about 130,000 USD. The problem is that this optimum is local, not global. The local optimum does not show similar results in the immediate vicinity. In other words, there is only one combination that gives great results, but any adjacent combination does not. A local optimum is an optimized combination with high probability, and classical optimization techniques tend to search for a local optimum.

Unlike genetic algorithms, which converge to a global optimum. The profit in this area is about 110,000 USD, but Optimal has many functional “neighbors”. Therefore, the global optimum is more robust than the local one (which yields more, but the set of parameters is questionable in terms of robustness).

Naturally, genetic algorithms do not always reach the global optimum, and sometimes they also contain local optimum in their solutions. At the same time, classical optimization does not always produce only the local optimum – often the best combination is part of the global optimum (and these are the moments when all possible solutions of GA and classical optimization match or will be very close). Unfortunately, genetic algorithms also use an element of randomness, so the end result is inherently less controllable – well, that’s the price you pay for speeding up the optimization.

Personally, I use both types of optimization and I think both have their place in ATS development. Genetic algorithms may seem scary at first, but once you run a few tests and get used to them, you’ll realize that they’re an indispensable help in many cases, and you’ll get a lot more done with them. Of course, there are plenty of academic studies that address aspects of both optimizations. We could argue about anything with either method – but I’m not an academic myself; I am a pure practitioner. From a practical point of view, GA can be truly invaluable, especially when used judiciously and intelligently. Therefore, there is no need to fear them, but it is important to use them wisely and wisely.

Happy trading!

Video about An Example Of A Scholarly Source Is A Peer-Reviewed Journal

You can see more content about An Example Of A Scholarly Source Is A Peer-Reviewed Journal on our youtube channel: Click Here

Question about An Example Of A Scholarly Source Is A Peer-Reviewed Journal

If you have any questions about An Example Of A Scholarly Source Is A Peer-Reviewed Journal, please let us know, all your questions or suggestions will help us improve in the following articles!

The article An Example Of A Scholarly Source Is A Peer-Reviewed Journal was compiled by me and my team from many sources. If you find the article An Example Of A Scholarly Source Is A Peer-Reviewed Journal helpful to you, please support the team Like or Share!

Rate Articles An Example Of A Scholarly Source Is A Peer-Reviewed Journal

Rate: 4-5 stars
Ratings: 4991
Views: 15748432

Search keywords An Example Of A Scholarly Source Is A Peer-Reviewed Journal

An Example Of A Scholarly Source Is A Peer-Reviewed Journal
way An Example Of A Scholarly Source Is A Peer-Reviewed Journal
tutorial An Example Of A Scholarly Source Is A Peer-Reviewed Journal
An Example Of A Scholarly Source Is A Peer-Reviewed Journal free
#Genetic #quotClassicalquot #Optimization

Source: https://ezinearticles.com/?Genetic-or-Classical-Optimization&id=9701193

Related Posts

default-image-feature

All Parts Of A Peer-Reviewed Journal Have Been Peer-Reviewed Ultralight Backpacking Water Treatment

You are searching about All Parts Of A Peer-Reviewed Journal Have Been Peer-Reviewed, today we will share with you article about All Parts Of A Peer-Reviewed Journal…

default-image-feature

A Job Performance Review Is A Form Of Two-Way Communication Principles of Speech Communication

You are searching about A Job Performance Review Is A Form Of Two-Way Communication, today we will share with you article about A Job Performance Review Is…

default-image-feature

Joico K-Pak Deep Penetrating Reconstructor Treatment For Damaged Hair Review Joico K-Pak Hair Care Products

You are searching about Joico K-Pak Deep Penetrating Reconstructor Treatment For Damaged Hair Review, today we will share with you article about Joico K-Pak Deep Penetrating Reconstructor…

default-image-feature

An Example Of A Scholarly Source Is A Peer-Reviewed Journal Do You Want A Real Spiritual Uplift – Then Experience The Sovereign Hand of Our Sovereign God

You are searching about An Example Of A Scholarly Source Is A Peer-Reviewed Journal, today we will share with you article about An Example Of A Scholarly…

default-image-feature

Amount And/Or Complexity Of Data To Be Reviewed And Analyzed Is Your Password Secure Enough?

You are searching about Amount And/Or Complexity Of Data To Be Reviewed And Analyzed, today we will share with you article about Amount And/Or Complexity Of Data…

default-image-feature

All Parts Of A Peer-Reviewed Journal Have Been Peer-Reviewed Is the Shroud of Turin Medieval? History Tells a Different Story

You are searching about All Parts Of A Peer-Reviewed Journal Have Been Peer-Reviewed, today we will share with you article about All Parts Of A Peer-Reviewed Journal…