Questions about Tradesim before purchase

[Anonymous]

Hi,

I'm new to this board, in fact I'm new to trading in general and I'm currently thinking of buying Tradesim (Enterprise Edition).

So before purchasing, here are my questions :

1) I use Amibroker

- Can Tradesim operate seamlessly with Amibroker ? (limitations and so on...)

- If so , does Compuvision provide the Amibroker codes (for long and short trades) in order to build the trades database ?

2) By the sound of it, Tradesim uses Monte Carlo simulation.

What of Hypercube simulation ?
(I was told this type of simulation was more efficient and less prone to errors regarding values sampling)

Thanks for your enlightenments,
Regards,
J. Hera

[David Samborsky]

- Can Tradesim operate seamlessly with Amibroker ? (limitations and so on...)

There are many people using TradeSim with Amibroker.

- If so , does Compuvision provide the Amibroker codes (for long and short trades) in order to build the trades database ?

We don't actually provide any coding but I believe there are examples available from the files area of the Amibroker/Yahoo forum at http://finance.groups.yahoo.com/group/amibroker/

2) By the sound of it, Tradesim uses Monte Carlo simulation.

We use the term Monte Carlo loosely. as TradeSim doesn't statistically synthesize prices as in the usual Monte Carlo fashion. Rather TradeSim repeatedly simulates a trading system where each simulation uses a random selection of trades from a group of trades with the same entry date, and which satisfy the trading rules. For example a simulation maybe run 1000 times and each simulations produces a different result. It should be noted that each simulation produced is as equally valid compared to the others because each simulation consists of real trades rather than fictitious trades created by synthesizing prices.

The resulting in-depth trade analysis is like a 'footprint' or 'signature' of the trading system. It gives you a multi dimensional view of your trading systems performance. Rather than display a rats nest of equity curves overlaid on top of each other it makes more sense to do a proper statistical analysis and display the results in terms of frequency distributions of net profit, winning and losing trades as well as trade expectation if it is applicable to the position size model used.

For example you may run 1000 trading simulations for a given trading system and portfolio, with each simulation producing a different result because a different trade sequence was taken each time. It is analogous to giving the same trading system and portfolio to 1000 different traders to trade the system. Each trader will produce different results because they won't have taken the same set of trades.