Optimization in the trading strategy tester is a process that helps find the most profitable settings for the bot so that it brings maximum profit or minimizes risks.
A simple example on a strategy with take profit:
Imagine that you have a bot that buys an asset and sells it as soon as the price has increased by a certain percentage (take profit). You can set the take profit manually, for example, 2%, but how do you know that this is the best option?
This is what optimization is for:
The tester runs your strategy with different take profit values, for example, 1%, 1.5%, 2%, 2.5%, and so on.
It then compares the results of each of these settings: where the bot earned more and where less.
As a result, you will see which take profit value brings the most profit for the selected period of time.
Optimization helps you find the settings that best suit current market conditions. This is especially useful if you are unsure how to best configure your bot to achieve the best results.
