6.3 Real Example: How Over-Fitting occurs when Increasing Degrees of Freedom

Following on from the previous video where a best-practice optimization was performed, our attention now turns to the disastrous effects of over-fitting when the degrees of freedom (number of parameters being optimized) is increased.

Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees:
https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=avoiding-noise-overfitting-optimizations-6-3

This proves how a profitable system with a real edge in live trading, can be completely destroyed by attempting to optimize too many parameters. A classic illustration of over-fitting.

For viewing the whole series in one place, visit https://www.youtube.com/playlist?list=PLv-cA-4O3y95J6xmwSaCILL4FlGJZO0PJ

-----------------------
IMPORTANT REQUEST: Please please please.. if you find this content useful, please do consider liking and sharing it on YouTube, Twitter, Facebook, LinkedIn and whatever other social networks you have circles in.

Darwinex relies almost exclusively on organic growth, primarily through recommendation via informative content.

YouTube’s algorithms measure the quality of Darwinex content on the basis of:
- Reach
- Engagement
- and several other related variables

With seemingly small actions such as:
- Clicking the Like button
- Clicking the Subscribe button
- Clicking the Share button (on YouTube) and distributing our content
- etc

… YOU inform YouTube’s algorithms of your sentiment towards Darwinex, thereby directly helping Darwinex MASSIVELY in achieving organic growth.

Thank you very much for your kind consideration!
-----------------------

Risk disclosure:
https://www.darwinex.com/legal/risk-disclaimer

** Fancy joining a vibrant community of algorithmic traders, quants and data scientists focused on financial hacking? Join the Darwinex Collective Slack Workspace:
https://join.slack.com/t/darwinex-collective/shared_invite/enQtNjg4MjA0ODUzODkyLWFiZWZlMDZjNGVmOGE2ZDBiZGI4ZWUxNjM5YTU0MjZkMTQ2NGZjNGIyN2QxZDY4NjUyZmVlNmU3N2E2NGE1Mjk

#AlgorithmicTrading, #Noise, #Overfitting, #Optimization, #DegreesOfFreedom, #WalkForward

Видео 6.3 Real Example: How Over-Fitting occurs when Increasing Degrees of Freedom канала Darwinex