Optimisation
Optimisation is the process of testing different strategy settings to identify combinations that perform best against a chosen measure. Strong historical results may reflect overfitting, where settings match past data closely but do not work similarly on unseen data.
In an illustrative exercise, a user compares different moving-average periods on historical data, then checks the selected settings on a separate, previously unused period.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure