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How is the algorithm in Builder different from genetic optimization, such as the genetic optimizer in TradeStation?

April 26, 2017ALGORITHM builder different genetic optimization optimizer tradestation

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How is the algorithm in Builder different from genetic optimization, such as the genetic optimizer in TradeStation?

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Genetic optimizers, such as the one in TradeStation, are designed to optimize parameter values, such as the inputs to a trading strategy. The algorithm in Builder is called genetic programming. By contrast, genetic programming optimizes the rules and logic of a trading strategy. It actually evolves the trading system starting from a set of possible technical indicators, logical operators, inequality operators, and entry and exit order types. In effect, it automates the manual process a strategy developer might go through in trying to develop a new trading strategy from scratch given only the market data and the developer’s knowledge of trading and the trading strategy development process.