# Optimizing a cBot on the cAlgo

### Video Transcription:

Hello traders, welcome to the cTrader tutorial and the fifth module extras. In this lesson we’re going to learn how to optimize the cBot, and we’re going to go ahead and take the same cBot that we already backtested that, well, at the end of the backtest gave us a net loss of, how much was it, £1,100.

So to optimize a cBot, instead of clicking the Backtesting tab, you go to the Optimization tab. When you’re on the Optimization tab you have to choose the period for the backtest, or the optimization of the backtest, so we’re going to choose from October 19th until today. Now the first thing you have to do is, of course, check the backtesting settings, which are the same, okay. We’re going to use a fixed spread of one pip on a one-minute bar with a 30 pip commission per million, etc., and of course, we’re going to use a £10,000 starting capital.

Now after that, you have to check the cBot parameters. Now, the periods on the simple moving average is a minimum 32, maximum 42, and a one step, okay? So we want to make it closer, so we are going to choose a 30, and a maximum simple moving average of 35. Now remember that when you’re backtesting, I’m sorry, when you are optimizing, you are going to have to go through this a lot. Meaning that, for example, the take profit is way too wide, so the minimum take profit should be 1 pip, I’m sorry, it should be at least 10 pips, okay, and the maximum should be… We already saw that by trying to take profit at 30 pips this Bot did not deliver, so we are going to put it at 20 pips maximum take profit. We are going to leave the stop loss at a maximum of 5 pips, and a trailing stop of 3 pips, which is fine for a scalping robot. Now, I think that we are going to leave the stochastic oscillator as it is because it’s actually giving good signals, but I think the trade management is off on this robot.

Then you want to go to the Optimization criteria, and here you want to know what you want to optimize. You want to maximize the net profit of each trade. You want to minimize the maximum equity draw down. You want to maximize the winning trades. And if you want to add a criteria, you can add it by clicking on this, I’m sorry, this button right here. And we want to minimize the losing trades.

Well, I have chosen to look at the best fitness first and the worst last. If we go below, you can see that we have the worst fitness at -12,378. Fitness will help optimize robots from the surfing scalper and when you find the best optimization results, you just click here on Apply and the robot has been optimized.

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