How do I know the trading strategies produced by Builder can be traded profitably?
Builder incorporates several features that help guide the process to strategies that are likely to have good out-of-sample and real-time performance. In particular, Builder now includes automatic out-of-sample testing, so you can separate the data on which the strategies are built (“in-sample” data) from the data used for testing (“out-of-sample” data). Also, you can choose to optimize for statistical significance, maximize the number of trades, and minimize the system complexity, all of which will increase the quality of the generated strategies. Moreover, the strategy logic produced by Builder incorporates volatility-normalized parameters, which help adapt the strategies to different market conditions. The user’s guide includes a section that covers factors affecting out-of-sample performance and ways to maximize the out-of-sample results.
