|
PureBytes Links
Trading Reference Links
|
Alex,
>ProSizer analyzes the theoretical future outcomes by randomly scrambling
the trade history hundreds of times, applying a position sizing model, and
gathering statistics on the results. This is an application of a technique
known as Monte Carlo simulation.<
i believe this answers my question...IOW, a Monte Carlo simulation is in
essence a random approximation of theoretical trades...correct?
many thanks for answering for me a question i was reluctant to ask, since
everyone else seemed to already know the answer :)
----- Original Message -----
From: "Alex Matulich" <alex@xxxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Sunday, April 13, 2003 4:08 PM
Subject: Re: Re[2]: Available Portfolio testing programs for TS2000i
> Jimbob:
> > i have avoided asking this question, in the hope of finding an answer
> > before i found it necessary to reveal my ignorance...but, would someone
> > explain what the hell Monte Carlo (in respect to trading) is?
>
> There's a short explanation at http://unicorn.us.com/trading/prosizer.html
|