Tracking Progress to Improve Your Algorithms in Financial BettingAdded - Dec. 8, 2014 Financial
A large part of financial betting is incorporating a degree of testing with trial and error when it comes to seeing if your algorithms are up to a level where they can be profitable. One of the best ways to test your algorithms to systematically improve them is to track the progress of different test options. We're going to show you some examples of how you can use this idea in your own analysis to improve your earnings over time in different types of financial betting. Keep in mind that this is a general concept that applies to many different types of betting, but binary options might be a good place to start since it's very clear how to use it there.
It all starts with identifying a variable that you aren't sure about. If you're having a hard time placing where this variable should be, then you should pick three guess values that you call high, middle and low. The point here is that you make your best guess which you call the middle, and then you pick a high and low value based around that middle. From here, you'll track how each of these forms of the variable will work out over several bets.
The whole point here is that you'll get a sample of possible outcomes over time that will point you in the right direction. Stick with your middle variable for your testing purposes if you're making actual bets, but feel free to run test bets over a large sample to see how your algorithms are going to work out before you put your money up. Over time, you'll start to see which of your three guesses (high, average and low) works out the best, and that will help you to clarify the value of your variable.
Something you need to be aware of is that sometimes changing one variable will have an effect on other variables, and you might need to take this into consideration when you're manipulating your algorithms. Testing pairs of variables together for sets of changes is one option for this, but just remember that the more changes you make, the larger of a sample you need to make sure that your changes are giving you the desired results. Overall, this is an excellent method for systematically improving your results in several different types of financial betting.