Monte Carlo Simulation

Monte Carlo Simulation is a statistical technique that uses repeated random sampling to model the probability distribution of possible outcomes. In trading, it takes your strategy parameters and runs thousands of randomized trade sequences to show the full range of possible equity curves.

Even a profitable strategy can produce wildly different outcomes depending on trade order. A 55% win rate system could hit 8 losses in a row early and feel broken, or string wins together and look incredible. Monte Carlo shows you both scenarios and everything in between.

Risk Analysis: Understand worst-case drawdowns and probability of ruin before risking real capital.

Position Sizing: See how different risk-per-trade values affect your survival probability across thousands of simulations.