(this is part 10 of the “AI for Finance Course“)

In this (final) lesson you will see how changing things outside the model (like risk levels) can affect the model performance.

In the previous lesson we saw the performance of the model where the price target was +0.3% and stop loss was -0.5%

----------------------------
| PERFORMANCE    |
----------------------------
- Initial capital: 100000.00
- Final capital::: 94416.09
- Total trades:::: 762

- ROI:::::: -5.58 %
- Min. ROI: -10.58 %
- Max. ROI: 2.01 %

- Drawdown: -12.34 %
- Pushup::: 12.70 %
----------------------------

But this performance can be improved by adjusting the risk levels while placing orders (without changing the model to learn these new risk levels).

For example here the target price is +0.5% and stop loss is -0.5%

----------------------------
| PERFORMANCE    |
----------------------------
- Initial capital: 100000.00
- Final capital::: 97519.00
- Total trades:::: 475

- ROI:::::: -2.48 %
- Min. ROI: -8.80 %
- Max. ROI: 3.09 %

- Drawdown: -10.14 %
- Pushup::: 13.03 %
----------------------------

And even though the model was completely unchanged (it was trained on the old risk levels -> +0.3% price target and -0.5% stop loss) it performs better just by adjusting the risk.

Order marketBuy = Order(
	c.BTCUSDT,
	OrderType.MARKET,
	Direction.BUY,
	currentPrice * 1.005, // target price = +0.5%
	currentPrice * 0.995, // stop price   = -0.5%
);

So this something you need to consider when training and testing your models/ideas.

Next Steps

Now you have everything you need to test your ideas, build your models, and learn what works.

The only thing you need now is persistence. There is nothing fancy about this process. It all boils down to who can test the most ideas in the shortest amount of time.

That’s it.

1) JOIN FREE DISCORD Q&A

I made a group specifically for questions related to this course.

If anything is unclear, this is a place to ask.

=> Join here (free)

2) GET THE BADGER BOT TEMPLATE

There are no secret algorithms in this template.

BUT

This template will give you speed. All the boring stuff is developer for you (like fetching the data, saving the data, deploying your bot to trade live in a single line of code, literally… etc.)

There is also an advanced Discord group for people who get the Badger.

=> Learn more about the Badger

3) IDEA MINING

Now it’s all about how creative you are and how many ideas you can test in a single day.

Personally, I have a process where I spend a couple of hours each day and test at least 20 different ideas.

So I know, by the end of the year, I will have about 7000 different ideas and models.

And one of those will definitely work.

LEARN MORE:
How I’m Building a Hedge-Fund From Scratch