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• Forcing Optimization by Vincenzo Sciarretta

  ARTICLE SYNOPSIS ...Forcing Optimization by Vincenzo Sciarretta Sooner or later, most system-oriented traders backtest a mechanical system and get a positive result - and then have it perform poorly in real-life situations. What gives? Sooner or later, most system-oriented traders experience this dismaying conundrum: They formulate a mechanical system, backtest it over a convenient period, and get a very positive result. They watch the equity line and see it rise in an almost straight line with small but acceptable drawdowns. With a methodology called forcing optimization. As an example of contrary results, I...

AUTHOR: Vincenzo SciarrettaDATE: FEB 2000SUBJECT: Trading Techniques