Monte Carlo analysis involves the use of algorithms to generate random repeated sampling of results. Typically, Monte Carlo is used to run a large number of simulations in order to find the likely probability distribution of an unknown event.
Joe Marwood is an independent trader and investor specialising in financial market analysis and trading systems. He worked as a professional futures trader for a trading firm in London and has a passion for building mechanical trading strategies. He has been in the market since 2008 and working with Amibroker since 2011.