Terms

Simulator

The simulator is a Monte Carlo plugin that is to be used by Amibroker users to analyze the robustness of a trading strategy. To make the interface more intuitive, the plugin is disabled by default. If you are an Amibroker user and want to take full advantage of the Simulator, it can be enabled in the:

File -> Preferences > Enable Amibroker Plugin

By clicking the checkbox to enable it, you will find three new additions to the interface:

• In the File menu there will now be an option to Import Amibroker trades
• In the Trades tabs, there will be a new tab near the bottom next to the Real-Time trades labeled Amibroker Trades. This is where the Amibroker trades will be imported when selecting to do so from the File menu.
• In the main tab group, a new Simulator tab to the right of the Performance tab.

TERMS

Before getting into that usefulness of the Simulator, let’s first go over some terms:

• Positions Per Trial - Number of positions (subset of total positions from the Trades tab) that are taken to generate one single equity curve. # of Trials - Number of equity curves to be generated. Each equity curve is composed of the number of Positions Per Trial, arranged in random order.
• Cut Best/Worst Outliers - Extracts the positive and negative extreme percentages specified from the entire trade list so they are not included in the simulation.
• Initial Investment - Initial trading capital to be used for the simulation.
• Fixed Fraction - % of capital to be used in each trade.
• Compound Profits – Compound trade profits on equity curve instead of using linear growth.