Optimizing EMA for automated trading
Posted: 28 Nov 2013 11:34
Hi there,
After optimizing an EMA based strategy, I have noticed that some of the numbers proposed by the optimization are quite illogical. It seems to swop the EMA numbers around by making the Slow EMA number lower than the fast EMA. As a result the metasentimentor seems to take long positions when the market is dropping and short positions when the market is rising. Is this correct and can I trust the optimization when it does this even though it shows profitability of over 80% on many sets of optimized numbers?
After optimizing an EMA based strategy, I have noticed that some of the numbers proposed by the optimization are quite illogical. It seems to swop the EMA numbers around by making the Slow EMA number lower than the fast EMA. As a result the metasentimentor seems to take long positions when the market is dropping and short positions when the market is rising. Is this correct and can I trust the optimization when it does this even though it shows profitability of over 80% on many sets of optimized numbers?