Monte Carlo analysis with strange results
preliminary testing only looks at one particular instance of an infinite number of random walk paths. It is by no means conclusive. A system will probably generate multiple buy signals on the same day.
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Monte Carlo analysis with strange results
preliminary testing only looks at one particular instance of an infinite number of random walk paths. It is by no means conclusive. A system will probably generate multiple buy signals on the same day.
Why are there no negative values? What parameters/inputs are you using?
looks like a bug in the software you are using. If done properly, a monte carlo analysis will always produce a normal distribution. Perhaps you should look into bootstrapping
It does look odd but what is the input data before your monte carlo analysis?
Agreed. Average profit is not even a tenth for the high outlier. Include a two way commission trip at $10 total and that's $100,000.
Not hating on your system, but it's food for thought.