3D Optimization

This add-in for Excel lets you prepare, visualize, and validate your parameter space for optimizations in 3D. It works with TradeStation data as well as TradersStudio data (TradersStudio is Murray’s backtesting platform – for more information, please visit http://www.tradersstudio.com). This add-in is vital for testing your system’s robustness across multiple parameters. The additional statistics calculations means that you can ensure that your system is producing statistically significant results.

To see how this product works, please see this short video by Murray below:

1. Preparing Your Data

In order to use this tool you will need to format your TradeStation or TradersStudio data in a way that can be used by this add-in. Fortunately, this tool includes a “split data” option which splits the data that originally uses commas into their own cells.

3D Visualization Screenshot 1

2. Charting Your Data

You can plot your data in 3D. Suppose you had a dual moving average crossover system in which you had two parameters – SLen and LLen. You could plot those on the X and Y axes and then plot net profit on the Z axis. Or you might consider plotting the ratio of net profit to drawdown to get an idea of the risk to reward ratio of your system.

3D Visualization Screenshot 2

3. Validate Your Data

Finally, this tool lets you validate your data by calculating the mean and standard deviation of net profit, drawdown, and the average trade win or loss. This will help you test the statistical validity of your system to see if it is an anomaly or if it truly is a good system.

3D Visualization Screenshot 3