u/john8a7a ·
Reddit — r/algotrading
· May 08, 2026 at 07:37
· ⬆ 17 pts
· 💬 39 comments
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AI Summary
Summary
The author describes overfitting their trading algorithm by adding filters to improve backtest ROI from 30% to 50%, but forward tests fail.
They seek advice on how to detect and avoid overfitting in algorithmic trading strategies.
Quality assessment: noise – this is a beginner-level methodological question with no specific market analysis or trade thesis.
Score17
Comments39
Upvote %95%
▶ Full Post Text
Hi, I am currently creating a trading system but I am struggling to understand what is overfitting . So let say I have a 30% ROI running my bot backtest. Then I would simply adjust 5 filters and get to 35% ROI ,,,then I would add more and more conditions and filters and get to 50% ROI on a back test.
I am clearly overfitting my algo . When I run forward test Or simply run different years on a backtest sometimes the overfitted info works our fine sometimes it doesn't.
Could you advise me on this issue? How do you deal with overfitting . Thank you.