If We Are in a Simulation, Who Is Running the Simulation Above Our Simulators? 🧠💻🌌
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If We Are in a Simulation, Who Is Running the Simulation Above Our Simulators? 🧠💻🌌
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A strategy needs to survive the rules of the challenge. Monte Carlo simulation tests different sequences of wins and losses under the same trading assumptions. Some paths reach the profit target. Others hit a loss limit first. Each curve represents a simulated attempt. Together, they show how risk per trade and challenge rules affect the range of possible outcomes. The analysis goes beyond passing. Net outcome per journey accounts for simulated funded payouts and fees, including paid retries. Ch
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➡️ Part 26 of Quantitative Finance From Scratch: the size factor. A company's size on the stock market is its market value, the share price times the number of shares. The classic size portfolio buys the smallest stocks, sells the largest and rebalances once a year. In our simulation (500 simulated stocks, 50 years, assumed numbers) the size portfolio earns 3.0 % a year with a t statistic of 2.21 while the built-in premium is switched on. From an assumed publication year on, the premium is switc
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