| Metric | Target Range | |--------|---------------| | Win rate | 45–60% | | Profit factor | 1.3 – 2.0 | | Max drawdown | 15–25% (annual) | | Sharpe ratio | 0.8 – 1.5 |
Example: When HMM detects "low volatility range," disable trend-following strategies and activate mean-reversion Bollinger Band trades. Instead of fixed lookbacks (e.g., 20-period SMA), train a small RL agent that adjusts strategy parameters daily based on recent win rate and Sharpe ratio. 51 Trading Strategies - Optimise Your Trades wi...
The best optimization is the one you can execute consistently. A simple moving average strategy with robust risk management will outperform a complex AI system that you abandon after three losses. Disclaimer: This article is for educational purposes. Trading financial instruments involves risk. Past optimization does not guarantee future results. | Metric | Target Range | |--------|---------------| |