Isolating Factions

Isolating factions is crucial for effective optimization, particularly if strategies involve multiple factions.

Isolating Factions

Factions can be used in isolation or in confluence with others. Factions should be isolated and optimized individually before backtesting a strategy involving multiple Factions. This is a key part of the Optimization Sequence.

To isolate a faction, follow these steps:

• Select your desired primary Faction e.g. Vikings

• Uncheck all boxes in the Confluence section

• Uncheck all faction confirmation boxes in the Super Trends section.

The Vikings faction has now been isolated and is ready to be optimized to market conditions. In this state, settings within the Mongols, Rangers, Spartans, and Wizards sections will have no effect on trend signals or backtest data. However, they may still operate in the background or interact with global settings.

Global settings in the Confirmation Control, Position, Volume Control, Price Control, and Volatility sections will not be affected by the steps above. However, Deactivating Risk Management Settings and Volume Control, Price Control, and Volatility Settings may simplify the initial stages of Strategy Optimization.

Deactivate Risk Management Settings

It may be beneficial to deactivate global risk management settings to simplify optimization initially. This ensures only Faction settings are affecting profitability data displayed in the Strategy Tester Panel.

Risk management elements can be reintroduced once algorithms contributing to a strategy have been optimized. Risk management settings are important for reducing the impact of Drawdowns on Equity and for improving risk performance, as measured by the Sharp Ratio.

Deactivate risk management elements by adjusting the settings below:

• Scaled Exits – Evaluation = off

• Take Profit – Take Profit Mode = off

• Stop Loss – Enable Stop Loss = disabled

• Trailing Stop Loss – Enable Trailing Stop Loss = disabled

Deactivate Volume Control, Price Control, and Volatility Settings

It may be beneficial to deactivate global Volume Control, Price Control, and Volatility settings to simplify optimization initially. This ensures only Faction settings are affecting profitability data displayed in the Strategy Tester Panel.

Volume Control, Price Control, and Volatility settings can be reactivated once algorithms contributing to a strategy have been optimized. These settings can play a pivot role in increasing Net Profit, reducing Max Drawdown, and improving risk performance, as measured by the Sharp Ratio.

Deactivate global volume, price, and volatility controls by adjusting the settings below:

• Volume Control = off
• Price Control – Price Strategy = off
• Volatility = off