Ultimate Algorithmic Trading System

FIGURE 8.4
mother.
At split 1 the genes that will be passed onto the offspring by the father and the
In this example, chromosome (2) is the mother and chromosome (4) is the father.
The crossover point was randomly generated at one, so the offspring received one
gene or number from the mother and three from the father.
Offspring =[00,30,30,04]
Chromosome(2)crosses chromosome(4)atpoint one = New chromosome (2)
How to Allocate Genes to Junior—Using VBA Excel
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GENETIC OPTIMIZATION, WALK FORWARD
'make sure mom and dad are not one in the same
'we are not dealing with earthworms - right?
If parentsList(i).dad <> parentsList(i).mom Then
Randomize
'how do we split mom and pop's genes?
crossPt = Int((3 - 0 + 1) * Rnd + 0)
'mom is replaced by combination of old mom and dad
For k = crossPt To 3
Next k
chromo(parentsList(i).mom,k)=
chromo(parentsList(i).dad,k)
After the creation of the offspring, it was then used to replace the old chromosome
(2), just like a child taking over his parents’ business. This example chose only one
crossing but in later generations (after total simulation was completed) more chromosomes
were crossed, and they were crossed at different points. The computer is
hoping to create a better offspring than the parents but as in real life this doesn’t always
happen. Just ask your neighbors whose 35-year-old son still lives in their basement.
■ Mutation
In nature, a mutation is change in a genetic sequence. A mutation can be good or
bad, but no matter—it does add diversity. In GA, a mutation occurs infrequently
but can tremendously help find a solution to a complex problem. Without mutation,
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