Step 02: Parameter Optimization

This step tests the full parameter grid on the research period and extracts metric winners: the best parameter set for each target metric or metric blend. Unfiltered and filtered winners are shown separately so both specialists and cleaner candidates remain visible.

InputFull parameter grid, research-period market data, metric-winner definitions, and optional winner-quality filters.

OutputOptimization surface, unfiltered metric winners, filtered metric winners, parameter-sensitivity plots, and metric-winner profiles.

Used laterMetric winners become the base set for SL/TP optimization and are also available to robustness shortlist construction.

Optimization surface

Filtered metric winners

Unfiltered metric winners

Research period	01.01.2022-01.01.2024
Metrics	topEfficiency, topSharpeTradeBased, topSharpe, topSortinoTradeBased, topSortino, topProfit, topMaxDrawdown, topProfitDrawdown, topExpectancy, topProfitFactor, topWinRate, topDDDuration, topProfitQuality, topBalanced, topMaxDrawDownRelative

Filters	rows=0.0/1520.0 trades>=20, profit_total>=0, profit_factor>=1, expectancy>=0, sharpe>=0, sortino>=0, win_rate>=0.35, max_drawdown<=0.5

Candidate Id	Buy Ema Short	Buy Ema Long	Selection Reasoni	Tradesi	Profit Totali	Profit absi	Win ratei	Final Balancei	Sharpei	Sharpe Trade Basedi	Sortinoi	Sortino Trade Basedi	Profit Factori	Expectancyi	Profit Drawdowni	Max Drawdowni	Max Drawdown Relativei	Drawdown Duration Pcti	Underwater Meani	Time Below Entryi	Efficiency Scorei	Balanced Scorei	Profit Quality Scorei	Benchmark Profit Totali	Alpha vs Benchmarki	Beta Adjusted Alphai	Correlation to Benchmarki	Beta to Benchmarki	Upside Capturei	Downside Capturei	Account Profit Totali	Account Max Drawdowni

Metric winner definitions

topEfficiency - highest Efficiency Score: composite of return quality, Sharpe, drawdown, expectancy, and trade count. See Appendix: Scores.
topBalanced - highest Balanced Score: geometric mean of 5 normalized components (profit, drawdown depth, drawdown duration, profit factor, Sharpe). Heavily penalizes weakness in any single dimension. See Appendix: Scores.
topProfitQuality - highest Profit Quality Score: drawdown-adjusted profit multiplied by logarithmic trade quality factors (profit factor, expectancy, win rate, trade count penalty). See Appendix: Scores.
topSharpe - highest Sharpe ratio computed on bar-level equity returns and annualized by bar frequency. Rewards a smooth equity curve including zero-return bars.
topSharpeTradeBased - highest trade-based Sharpe: mean daily return divided by std of individual trade returns. Penalizes outlier trades; favors many consistent, low-variance trades.
topSortino - highest Sortino ratio computed on bar-level equity returns and annualized by bar frequency. Penalizes only bars with negative returns.
topSortinoTradeBased - highest trade-based Sortino: mean daily return divided by std of losing trade returns only. Penalizes losing-trade volatility without penalizing profitable outliers.
topProfit - highest total return (% of allocated capital) over the research period.
topMaxDrawdown - lowest maximum drawdown. Best capital preservation regardless of return.
topProfitDrawdown - highest profit/drawdown ratio. Balances return against worst peak-to-trough loss.
topExpectancy - highest expectancy: average expected P&L per trade, accounting for both win rate and win/loss sizes.
topProfitFactor - highest profit factor (gross profit / gross loss).
topWinRate - highest win rate (% of trades closed with a profit).
topDDDuration - lowest drawdown duration (least time spent below previous equity peak).
topMaxDrawDownRelative - highest Max Drawdown Relative Score: double-penalizes drawdown depth compared to topProfitDrawdown. Approximation of freqtrade MaxDrawDownRelativeHyperOptLoss.

For more information see Appendix: Scores.