TradeSim
Using Computer Simulation to Maximize Profits and Control Risk
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What is the optimal amount to risk on a trade? How do you maximize your profit while limiting risk? TradeSim can explore these questions.
The book "Trading Strategies, Using computer simulation to maximize profits and control risk", talks about these ideas. It begins with an introduction to the marble game as a simple means of exploring risk and reward when there is a random element involved. Then several real trading systems are tested. Some very profitable and some less profitable. A companion to the book is TradeSim, Monte Carlo simulator software that can use either the marble game metaphor or input data from real trades to produce graphs and tables that fully explore the range of risk and reward likely from a trading system.
The TradeSim program has several models for treatment of risk.
TradeSim shows results in tables and graphs.
Ending Equity and Drawdown charts are the two most frequently used charts.
Here is a table of numerical results.
There are also Scatter graphs of Equity against Drawdown
Equity Accumulation per Trade charts
and Lowest Equity graphs.
Buy the Trading Strategies book and TradeSim software
E-mail: sanders@TradeLabStrategies.com
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.
Copyright 2002, LSS Limited
Last update 2002.06.22