Ever heard of the saying
"You can't have your cake and eat it too"?
Don’t about you, but I think it's a ridiculous saying - what's the point in having a cake if you can't eat it?
In strategy development, you could say that trade filters are a 'You can't have your cake and eat it too" moment, because of 2 conflicting theories:
1. Adding a filter improves trading strategies by removing the poor trades = GOOD.
2. Adding a filter introduces more optimizable variables, therefore increasing the chance of curve fitting and reducing robustness = BAD.
Wouldn't it be great to have filters that remove poor trades AND reduce the chance of over-fitting too?
It might seem impossible, but it’s not...
In this issue of the Empowered Trader club, Tomas shares 3 super-effective “parameter-less filters” you can use to improve your trading strategies, reduce bad trades and NOT increase curve-fitting.
In this case, you CAN have your cake and eat it too. :-)
Plus, as a special bonus, you also get access to the code (in EasyLanguage format) so you can test them out on your own strategies.
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