How many times should you test an algo?

- By Matt Clarke
- 23 Nov 2021

The role of luck – both good and bad – is commonly underappreciated in the world of algorithms. Many traders will try an algo five times and then form a strong opinion based on what they have observed. But is this reasonable?

In the following thought experiment, this opinion piece focused on a single currency pair – sterling/US dollar – and chose three order sizes: 10 million, 50 million and 100 million.

We randomly selected 10,000 order start times over the past few months then flipped a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@fx-markets.com or view our subscription options here: https://subscriptions.fx-markets.com

You are currently unable to print this content. Please contact info@fx-markets.com to find out more.

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@fx-markets.com

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@fx-markets.com