In this lecture
- Simple steps to improve a strategy
- Following the rules
- Controlling emotions
- A money management plan
Lesson notes
Change one thing at a time
- Collect at least 50–100 trades from your journal or a backtest.
- Find the weak spot: a session, a pair, a setup type, the exit.
- Change one rule.
- Test again on new data, not the same trades.
- Keep the change only if the results improve.
Beware of over-fitting
Adding rules until past results look perfect usually fails on new data. Prefer simple rules that work across several pairs and periods.
The three parts
Optimisation works only if you follow the rules, keep your emotions out of execution and use a money management plan. Otherwise the data measures your mistakes, not your strategy.
Khulasa (Roman Urdu / Hindi)
- Aik waqt mein sirf aik rule badlein.
- Naye data par dobara test karein.
- Over-fitting se bachein, simple rules.
- Rules, jazbaat par qaboo, money management.
Questions
How do I optimise a trading strategy?
Collect data, find the weakest part, change one rule and test it on new data.
What is over-fitting in trading?
Tuning rules so closely to past data that they fail on new data.
How many trades do I need before changing a strategy?
At least 50–100, so the results are not just luck.
Should I optimise entries or exits first?
Often exits: small changes to stops and targets can change results a lot.
Can a trading journal help optimisation?
Yes. It shows which setups, sessions and pairs work best for you.
How often should I review my strategy?
Weekly for execution and monthly or after 50 trades for rule changes.
Related lessons
How to backtest a trading strategy like a proRisk & Money Management
Money management plan: grow a small account step by stepMarket Analysis
Increase the accuracy of the classic trading method (Part 2)Education only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.
Qazi Forex Tips