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I have read that the TradeSim
Enterprise can be used to develop a risk profile for a trading system applied
to one security or a portfolio of securities.<span
> I have also read that Ice 2.0 can
be used to develop an optimized trading system for a single security. <span
>
Is it possible to use the <span
class=SpellE>monte <span
class=SpellE>carlo features found in TradeSim
Enterprise in combination with Ice 2.0 to develop a more effective trading
strategy?
At this time my trading is somewhat
limited to evaluating the purchase of 2 to 3 securities from a portfolio of 100
recommended through Investor’s Business Daily CANSLIM methodology.<span
> If this method turns profitable then I
may investigate other securities.
For now, I am seeking a statistically valid way to evaluate how to trade
these securities.
My apology for the repeated postings …
I am somewhat new to Yahoo groups.
<span
>
<span
>
<span
>-----Original Message-----
From: Adrian Pitt
[mailto:apitt@xxxxxxxxxxxxx]
Sent<span
>: <st1:date Month="4" Day="18"
Year="2004">Sunday, April 18, 2004<font size=2
face=Tahoma> <st1:time
Hour="1" Minute="14">1:14 AM<span
>
To: equismetastock@xxxxxxxxxxxxxxx
Subject: RE: [EquisMetaStock
Group] Question on <span
>Monte Carlo<font
size=2 face=Tahoma> Testing
<span
>
<span
>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.
<span
>
<span
>Cheers,
<span
>Adrian
-----Original Message-----
From: metastockuser
[mailto:metastockuser@xxxxxxxxx]
Sent: Sunday, 18 April 2004 3:05
PM
To: equismetastock@xxxxxxxxxxxxxxx
Subject: [EquisMetaStock Group]
Question on Monte Carlo Testing
<span
>Exactly in what area does it help? I mean if it
is helpful, then<span
>
someone should be able to explain how it is
helpful?
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