Introduction When designing a strategy, a beginner will pick a few parameters at random, either directly from the price or from indicators, and will attempt to predict future movements based on those parameters. When he’s convinced those parameters don’t hold any information, he’ll choose some slightly different parameters and so forth. This is a sensible way to explore forex instruments however, there are so many parameters to look at and try out that you will most likely die of old age or at least go bankrupt before you find a winning strategy. That’s why I automated the process in an algorithm that attempts to find the optimal parameters for predicting EURUSD movements.A randomizable set of parameters We have to define limits for a space of parameters we want to explore. To do this I first build a list of the lowest price daily, in two days, in three days… until 15 days. The high price could also have been used.Once we have this list, a parameter is defined by three numbers we’re going to call i, j and k. The value for a single parameter for day n is given by taking, in column i, the difference in percent between price n – j and n – k. Thus, our parameters are movements from hi…
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