3 Uses for Monte Carlo Simulations in Trading
Published in
1 min readAug 2, 2019
The Randomized Monte Carlo test is one of the many tests offered in BuildAlpha to check for overfitting in the strategy creation process. Randomized Monte Carlo re-trades each entry signal from the backtest but uses a random (yet appropriate) exit for each signal and then repeats this process 1000 times. Again, leaving us with 1000 new equity curves to analyze.
