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A
complex topic where not everyone believes the same thing. If you
believe that there is a correlation between trades i.e. that winners beget
winners or winners beget losers, then MC isn't for you. If you believe all
trades are randomly distributed, and statistically its hard to go past that,
even though intuitively it might not always seem so, then MC is a big help for
traders of 1 or multiple systems on 1 or multiple markets. What it will
help do is quantify the risk profile for a trader. It will help you decide
how much to risk and how much capital is needed for you to remain within certain
drawdown parameters with a certain confidence limit. So for ample a trader may
wish to stay within a 30% drawdown with 99% confidence. MC will hep you do
that if you have a database of trades.
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2>Cheers,
<FONT face=Arial color=#0000ff
size=2>Adrian
<BLOCKQUOTE
>
<FONT
face=Tahoma size=2>-----Original Message-----From: metastockuser
[mailto:metastockuser@xxxxxxxxx] Sent: Sunday, 18 April 2004 3:05
PMTo: equismetastock@xxxxxxxxxxxxxxxSubject:
[EquisMetaStock Group] Question on Monte Carlo
TestingExactly in what area does it help? I
mean if it is helpful, thensomeone should be able to explain how it is
helpful?
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