Monte Carlo Simulation Explained; The Ultimate Guide
As a trader, you probably noticed understand that markets change from time to time. For example, during the summer we often see that the markets are quieter and during the fall we usually get some more volatility. It’s important for you to adapt to these changes A good trading strategy can withstand these changes in the markets. But how do you know if your trading strategy is good and robust enough? That’s exactly where a Monte Carlo simulation can help. Apart from using your historical data to learn more about your trading performance, you can perform a Monte Carlo Simulation formula to get an idea of how your strategy might perform in the future. In this article guide, I’m going to try to explain the Monte Carlo Simulation for you so, in the end, you know how you can use it to analyze and improve your trading results