Normalizer: Simple Trading Strategy (User Guide)
Normalizer: Simple Trading Strategy (User Guide). You can find Expert Advisor Studio on our website: https://eaforexacademy.com/s/qsJpF.
In this video, we will be discussing the Normalizer: Simple Trading Strategy.
The Normalizer: Simple Trading Strategy is a tool in Expert Advisor Studio that ensures that your strategies are neat, and its main task is to enhance their performance.
It is much better to have a strategy that consists of fewer components and where the parameters of the indicators are more comprehensible and easier to understand.
Now, the first thing that you'll see is that we have our Toolbar.
The strategy Normalizer has the same control buttons as the Optimizer, and they have the same function as well.
The first thing you'll see is that we have our strategy parameters. In this step, you can view the values of the indicators that you have set. And after that, in the normalized section, you can see if there are any changes to them.
Once you have run the Normalizer. The next step is the Normalizer settings.
And as you can see, there are a number of options here.
The first is Remove Take Profit. It will test if the performance of the strategy is higher without a Take Profit.
The next is Remove needless indicators. If it detects that there are indicators that do not benefit the strategy in any way, it will remove them. This makes the strategy faster, and it prevents over-optimization.
The next is Reduce Stop Loss. Now, as long as the strategy is still profitable, making the Stop Loss smaller creates a more favorable risk to reward ratio, and it decreases the maximum loss. The reason that we don't have a remove Stop Loss option is to keep our strategy safer.
The next is the Reduce Take Profit. Now, another way of improving your strategy's performance is to increase the Take Profit, so that the profit is reached quicker and more often than the Stop Loss.
Next, we have the Normalize indicator parameters, and most traders will advise you to use the default settings of technical indicators. The creators of the technical indicators have put in a lot of effort to find the best workable values.
However, the Expert Advisor Studio will give you the best parameters for the indicators based on the historical data that you use.
So how does the Normalizer: Simple Trading Strategy actually work?
Well, let's have a look at an example where we have an AUDUSD strategy with a Take Profit of 2000 pips. It will be less probable for this profit to be hit, so the Normalizer removes it to calculate the strategy's performance.
Now, there's a process that the Normalizer goes through. The first be if you remove the Take Profit option, the strategy Normalizer would modify the strategy.
It then runs a backtest on the strategy. It then performs a strategy validation against the common acceptance criteria. Then it calculates the quality of the strategy in accordance with the search best options.
And if the strategy passes the validation and has an equal or better performance than the original one, it applies to remove the Take Profit setting.
If not, the Normalizer will restore it to the old strategy.
Using the settings that we have, let's run the Normalizer on the strategy that we have here. As you can see, it runs very, very quickly. Within a few seconds, it's at 100% progress.
As you can see, the parameters that we had in it were already excellent.
So it hasn't made any changes, and we can move on to the next strategy.
Our Trading Packages: https://eaforexacademy.com/s/NSsvJ
★ Test EA Studio with a 15-days trial and get the FREE course:
https://eaforexacademy.com/s/qsJpF
� If you have any questions about the Normalizer: Simple Trading Strategy, please, write in our trading Forum, where you will receive an answer within 12 hours.
https://eaforexacademy.com/s/XzHqM
All our online algorithmic trading courses are available on our website:
https://eaforexacademy.com/s/KPMvz
Let’s connect on social media:
Facebook: https://www.facebook.com/eaforexacademy/
Instagram: https://www.instagram.com/eaforexacademy/
LinkedIn: https://www.linkedin.com/company/33249615/
Twitter: https://twitter.com/EAForexAcademy/
In this video, we will be discussing the Normalizer: Simple Trading Strategy.
The Normalizer: Simple Trading Strategy is a tool in Expert Advisor Studio that ensures that your strategies are neat, and its main task is to enhance their performance.
It is much better to have a strategy that consists of fewer components and where the parameters of the indicators are more comprehensible and easier to understand.
Now, the first thing that you'll see is that we have our Toolbar.
The strategy Normalizer has the same control buttons as the Optimizer, and they have the same function as well.
The first thing you'll see is that we have our strategy parameters. In this step, you can view the values of the indicators that you have set. And after that, in the normalized section, you can see if there are any changes to them.
Once you have run the Normalizer. The next step is the Normalizer settings.
And as you can see, there are a number of options here.
The first is Remove Take Profit. It will test if the performance of the strategy is higher without a Take Profit.
The next is Remove needless indicators. If it detects that there are indicators that do not benefit the strategy in any way, it will remove them. This makes the strategy faster, and it prevents over-optimization.
The next is Reduce Stop Loss. Now, as long as the strategy is still profitable, making the Stop Loss smaller creates a more favorable risk to reward ratio, and it decreases the maximum loss. The reason that we don't have a remove Stop Loss option is to keep our strategy safer.
The next is the Reduce Take Profit. Now, another way of improving your strategy's performance is to increase the Take Profit, so that the profit is reached quicker and more often than the Stop Loss.
Next, we have the Normalize indicator parameters, and most traders will advise you to use the default settings of technical indicators. The creators of the technical indicators have put in a lot of effort to find the best workable values.
However, the Expert Advisor Studio will give you the best parameters for the indicators based on the historical data that you use.
So how does the Normalizer: Simple Trading Strategy actually work?
Well, let's have a look at an example where we have an AUDUSD strategy with a Take Profit of 2000 pips. It will be less probable for this profit to be hit, so the Normalizer removes it to calculate the strategy's performance.
Now, there's a process that the Normalizer goes through. The first be if you remove the Take Profit option, the strategy Normalizer would modify the strategy.
It then runs a backtest on the strategy. It then performs a strategy validation against the common acceptance criteria. Then it calculates the quality of the strategy in accordance with the search best options.
And if the strategy passes the validation and has an equal or better performance than the original one, it applies to remove the Take Profit setting.
If not, the Normalizer will restore it to the old strategy.
Using the settings that we have, let's run the Normalizer on the strategy that we have here. As you can see, it runs very, very quickly. Within a few seconds, it's at 100% progress.
As you can see, the parameters that we had in it were already excellent.
So it hasn't made any changes, and we can move on to the next strategy.
Our Trading Packages: https://eaforexacademy.com/s/NSsvJ
★ Test EA Studio with a 15-days trial and get the FREE course:
https://eaforexacademy.com/s/qsJpF
� If you have any questions about the Normalizer: Simple Trading Strategy, please, write in our trading Forum, where you will receive an answer within 12 hours.
https://eaforexacademy.com/s/XzHqM
All our online algorithmic trading courses are available on our website:
https://eaforexacademy.com/s/KPMvz
Let’s connect on social media:
Facebook: https://www.facebook.com/eaforexacademy/
Instagram: https://www.instagram.com/eaforexacademy/
LinkedIn: https://www.linkedin.com/company/33249615/
Twitter: https://twitter.com/EAForexAcademy/
