What is a good DNA?

Often the question is asked what a good DNA is or when the optimize mode came to a "solution". You don't have to actually wait until the progress reached 100%. An indicator that the algorithm found a solution is when DNA's start to be similar / patterns emerge. Be aware that this is also the point where overfitting most probably already happened. You might want to test earlier DNAs before that point. Also, a DNA obtained by the optimize mode is never live-trading ready. Overfitting is a big danger here. So you have to do further analysis on the DNA. Like:

  • Out of sample backtests
  • backtests with candle data from different exchanges (they have slightly different prices and volume data)
  • backtest on different timeframes and with different symbols

If a DNA succeeds multiple of these tests it might be a good one, but only paper trading (or live with a very small test budget), will reveal if that's true.

Last updated: 2 years ago