Equity Envelope for Monte Carlo Simulations

[Tony]

David,

I would endorse the suggestion by a previous poster for the inclusion, in the Enterprise Edition, of an envelope or scatter plot of equity from Monte Carlo simulations. This would be a very useful aid in quickly assessing system performance.

Also, in addition to the max, average and min profits, the median profit would also be useful for cases where the profit results are not symmetrically distributed about the mean.

Thanks,

Tony

[SLicK]

I like Tony's suggestion for facilitating results interpretation. Along similar lines, how about color coding the "Frequency Distributions / Net Profit" chart to illustrate one, two, and three standard deviations.

[Tony]

SLicK,

I think that a useful addition, along the lines of your suggestion, but, possibly, easier to interpret, would be to show confidence limits for the simulation results as vertical lines on the profit distribution plot. For example, such lines could be drawn to correspond to the upper and lower 5%, 2%, 1% or any other desired limits.

This information is currently available from the cumulative frequency distribution, but the above would assist in enabling a quicker assessment of the distribution of results.

Tony