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Money Management Optimization

The Money Management Algorithm tool also includes an Optimizer. We introduced the Optimizer Tool in Revision 4.1 to efficiently optimize which algorithms to use on a strategy. The Money Management Algorithms could be used to optimize but if you optimize each of the 13 Rules for every combination of On or Off (since you can combine as many rules as you would like, or trade them individually) the total number of combinations and optimizations (without even optimizing the parameters for each rule) would be 8,192. You can see this when you setup an optimization for each of Rules 1 - 13 to optimize from 0 to 1 with an increment of 1 (testing for each rule to be On (1) or Off(0), think of discrete math and boolean logic here).

The individual parameters could also be optimized before the Optimizer is run. 

The OPT money management algorithm strategy allows us to quickly optimize Rules 1-13 to see how each one individually ranks.  We can then apply the top rules from the OPT strategy back into our Money Management Algorithm strategy (MM: Equity Curve Algorithms Rev 4.0).  We show this in detail in the video below.

Money Management Algorithm
Trading System Optimization Tool Video

Optimization Results for the Equity Curve Algorithms on Cobra CT
Optimization Results for the Equity Curve Algorithms on Cobra CT