Adrian ReidFounder of Enlightened Stock Trading

How often do you need to reoptimize a trading system

31 Jan 2025 · 1 min

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Adrian Reid explains how often trading systems should be reoptimized. He advises continuous monitoring (weekly or monthly checks for warning signs) and says reoptimization is triggered by market behavior drift rather than a fixed schedule. Typical review cadence for stable systems is roughly every six months to once a year, while very short-term strategies require more frequent recalibration.

Questions this video answers

Weekly or monthly.

About once every six months to once a year.

No — 'you're certainly not doing it every week.'

Very short-term strategies.

Chapters

Very short term strategies would need to be recalibrated or adjusted more often in general than the longer term strategies. But what I would say is we monitor our strategies on a very consistent basis. Weekly or monthly, we check are they doing what they're supposed to do, because we're looking for warning signs. So you don't necessarily have to recalibrate your system every six months, or every 12 months, or every five years. You're just looking for warning signs that the market has, the market behavior has shifted or drifted. And then you might, you might recalibrate or re optimise the system. But in general, a good system, it doesn't have to be very often. You're certainly not doing it every week. It's more likely once a year, you might have a good look at it. Or once every six months, you might have a good look at it. If it's a short term system.