Boring Pips optimization process – A rigorous validation process that creates a difference. Boring Pips undergoes a comprehensive and tailor-made optimization process called Anti-overfitting. This is a robust optimization process implemented to eliminate any influence of overfitting on the trading system, ensuring the generality of the constructed model. Please refer to the article linked in Part 2 above for a more in-depth look at this process. Anti-overfitting process consists of 3 stages: – Initial Optimization: This stage involves optimizing the Boring Pips using historical data from 2010 至 2019. The purpose of this phase is to test the initial premise of the trading strategy and extract the most robust parameters values. – Walk-forward: In the second stage, the parameters that performed well in the first stage are tested using entirely new data ranging from 2019 至 2022. The objective is to ensure the trading system’s stability with fresh data and evaluate the predictive power of the model. – Stress testing: Parameter values that pass the first two stages will undergo Stress testing. In this final test, a simulation algorithm is used to introduce variables like Noise and Lag to the initial entry and exit points (determined by the selected parameters from Walk-forward phase). The goal is to push the system beyond its ‘comfort zone’ and assess the system’s tolerance to random factors such as lag and noise.