Optimization is important because it provides flexible solutions to problems associated with asset allocation, risk management, option pricing, volatility estimation, portfolio optimization, and construction of index funds can be solved using optimization techniques such as nonlinear optimization models, quadratic programming formulations, and stochastic programming models.
I make use of the following: (1) Dynamic rebalancing, (2) Walk forward testing, (3) Grid testing, and (4) Genetic algorithm.
[In progress.]