Monte Carlo Simulation Overview

Monte Carlo Simulation is a mathematical technique used to study data that is highly random in nature. When used for trading, it is a method of randomizing trade results and running those results in a series of simulations to analyze the probability of multiple outcomes. This type of analysis will help you recognize if your strategy runs the risk of wiping out your account before it can turn a profit or not. Monte Carlo Simulation can be selected in the display drop down after a backtest has been run.

›Running a Monte Carlo Simulation