12.1) What is 'Walk Forward Analysis' and how does it improve Trading System Optimizations

Walk Forward Analysis (WFA) provides many advantages over a standard optimization process and helps algorithmic traders produce more effective trading systems. Also called Walk Forward Optimization (WFO), this backtesting method overcomes a number of major issues inherent in the standard approach. This episode shows how Walk Forward Analysis provides a solution.
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[@leonjbr]

Clear and useful.

[@caioagrizzi]

impossible to be clearer

[@MrA1wizard]

This great work. Thank you for this.

[@specialagentslowhand]

Great content. What does it mean if the walk forward (out-sample) performance is better than optimized (in-sample) performance? Similarly, what if each phase seems to improve? I would expect performance to degrade over time. Thank you for this!

[@bsbrosentertainment8637]

Having to optimize 4 parameters, (if I understood) it is better to do two optimizations​ with two parameters at a time.

[@muammaranwar6971]

Can i do it in metastock? Has metastock's system tester included Walk-Forward Analysis in its backtesting and optimization?

[@ulziibaatar2369]

What is best period interval for novice algo traders?

[@diegosoto6516]

Great stuff...u Say un one of tour videos that one shouldn't optimizw more than at most 3 parameters...but what happens ir i'm teeting a strategy which has Lot of parameters...more than 10...moreover what happens i'm the scenario un which i'm looking for the Best combinación of múltiple strategies...with fixed parameters...

[@hugh2200]

Where can I get the excel walk-forward file?

[@nehemaialord2653]

This would be hard to do on the daily timeframe because of the low historical data. I trade on the daily timeframe because it’s the best timeframe

[@lukexu4845]

Wouldn't it also be viable to have a long optimization phase and having a system which is adjusted all market conditions? Suffering lower returns short term seems like a good trade-off for a system that can perform well regardless of market conditions. Curious is all. Thanks for the vids!