EdgeWare FastBreak Pro Version 6.5 - Manual (Page 62)

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an inaccurate indication of performance when performance results are measured over
a very short trading period. For this reason, it is important to have an OS period of
reasonable length. Also, the problem can be exacerbated if the strategy holds a few
stocks. Our example holds five stocks which will help mitigate the problem, i.e., a few
big trades are less likely to give an unreasonable indication of performance.
This optimization can take a long time (overnight on a Pentium 2.4 GHz) because the
family is large.
Here are summary results after 20 generations:
You can see that the results are very impressive. At this point, you choose the optimum
generation to save the top ten trading systems. Our preference would be for generation 14
which has a very respectable OS return and the added advantage that the UPI and MDD
are the best of all generations. The average OS MDD is better than our 30% goal.
At this point, you would create the DFT files, look at the systems in more detail and
finally select the one to trade.
We will take a detailed look at strategy 5 (Note:
Remember the DFT files are saved starting with zero) of generation 14.