TradeSim

Using Computer Simulation to Maximize Profits and Control Risk

This web site is for traders and developers of trading methods.

TradeSim is software that does Monte Carlo analysis of trading returns to analyze the range of profit and drawdown that is expected in the future. Using TradeSim you can see just how profitable a trading method or system is. Not just the historic results, but the full range of likely outcomes for a particular trading method. It is available for a 4 day free trial.

The companion book 'Trading Strategies: Using computer simulation to maximize profits while controlling risk'. Discusses the concepts of using Monte Carlo analysis to analyses trading results. The book is in Adobe pdf format at no cost. Get the book

TradeSim applied to real trades.

Simulation - What is it, Why use it.
Some applications of TradeSim - TacTrade
Risk Strategies - Modeling risk strategies.
Path Dependence - A powerful simulation feature.

Finding a profitable risk level.

Optimal-f - What it does
About using optimal-f to chose risk - Looking for Low risk in all the wrong places.
Finding True Optimal Risk

Using TradeSim

Getting started - an example of using TradeSim
About Risk calculation
Getting data into TradeSim
New features in TradeSim.

Exploring Risk

Randomness is not intuitive - The birthday question. The Gambler's Fallacy
Martingale systems - The fallacy of increasing bet size after a loss.
The nature of trading - Mother thinks trading is easy.

Links

Guestbook - Email if you would like to know about updates and news for this site.

TradeSim the Trading Simulation program

Comments from Users and Readers

"Thank you very much again for your fascinating and brilliant software TradeSim" - Christian M.

"I refer to your stuff often when talking to customers. The principle has kept me in the game." - Rob Mitchell Registered Investment Advisor (RIA) Winsauna Capital Management, Inc..

"I have run across several articles that you have written, and have enjoyed them greatly. I myself am a trader, and thought that you have provided some very valuable lessons within your article's text".

"I just read your thought-provoking posting on the TraderClub forum, which I wish I had discovered much sooner".

This web site is for the education of traders. The discussions here are not to be considered a recommendation of any trading strategy, just an information resource to aid the trader in making his or her own informed decision regarding risk control.

Last update 2003.01.11