×

Sign up and get MultiCharts free

Use its powerful simulation mode with data included out of the box. Just fill out the form and start honing your trading skills with a few clicks.

Changes - MultiCharts

Changes

Jump to navigation Jump to search

Monte Carlo Analysis

3 bytes added, 14:48, 14 September 2016
#For Shuffled analysis they are presented as a graph , in which all of the generated simulations are plotted along with the base equity curve. As simulations are generated by shuffling the trades of the base equity curve, most of the characteristics (net profit, gross profit, gross loss) will coincide for all of the simulations, so the analysis is aimed at evaluating risks through extreme and average MaxDrawDown values. Curves with the Largest and Smallest MaxDrawDown values are highlighted with different colors.
#For Distribution Analysis the results are presented as a graph or table of normal distribution of statistical parameters selected by a user.
 
'''X-Axis'''
The horizontal axis of the Distribution Analysis graph shows the share of simulations (in %) the characteristics of which are below the value of Y-axis. For example, if you select 1000 as the Number of Simulations for a Net Profit graph (as at the screenshot above), the point A means that the Net Profit value of 500 of the simulations will be below $90€33,44070, and Net Profit value of the remaining 500 simulations will be more than $90€33,44070.
This graph also allows you to see both best and worst case scenarios to evaluate the risk/reward ratio of your strategy.

Navigation menu