System Evaluation

[Cab Vinton <cvinton@xxxxxxxxxxxxxx>]

For a while I've been interested in using a Monte Carlo approach with a
random system in order to benchmark systems.

I'm now beginning to question the usefulness of that approach, however.

Let's say you discover after 10,000 simulations that your system is in
the top 20 percentile (according to net profit, % winners, or whatever).

But what good is this information? As far as I can tell, in using this
approach, the better your system, the more curve-fit it is.

Am I missing something here?

Is there a theoretically sound way to use this methodology to judge the
quality of a trading system?

Thanks,

CAB.