Difference between Optimization and Walk Forward Optimization?

[timmbbo]

This should be a FAQ, but I couldn't find it - the difference between Optimization and Walk Forward Optimization?

Say I do an optimization for 30 days. Then, I do a Walk Forward Optimization with a 15 day optimization period, and a 15 day test period. What is the difference between these two scenarios?

Thanks,

[NinjaTrader_ChelseaB]

Hello timmbbo,

An optimization would backtest every iteration with the range and combination of inputs over the entire data set.

A walk forward would run an optimization over the test period, then use this to generate a set of parameters for a new set a tests over the optimization period. This would be a more guided way of testing less iterations.

Below is a link to the help guide.

https://ninjatrader.com/support/helpGuides/nt8/index.html?walk_forward_optimize_a_strate.htm#UnderstandingWalkForwardResults