We present an optimization procedure for Monte Carlo variational calcu
lations and illustrate it by optimizing pair and triplet correlations
in the ground-state wave functions of liquid He-4 and He-3. We use the
optimized trial functions, with a partially optimized backflow for He
-3, to perform extensive diffusion Monte Carlo simulations that yield
accurate results for the equation of state and structural properties o
f both liquids. The agreement with experiments, which is excellent for
He-4, somewhat deteriorates in going to He-3, due to the use of the f
ixed-node approximation. The remaining appreciable discrepancies betwe
en the results of variational and diffusion Monte Carlo unambiguously
point to the increasing importance of n-body correlations, with n>3, a
s the density is increased.