Systematic Advantage #16: Systems can apply monte-carlo simulations to past track records to account for 1000s of outcomes
Trading systems can leverage sophisticated Monte Carlo simulations to evaluate the past track records of investments, making adjustments that account for thousands of potential outcomes. By simulating these various outcomes, the system can create an accurate and comprehensive picture of investing scenarios, providing investors with a data-driven approach to decision-making. In addition, rather than relying solely on historical data, the system can consider numerous hypothetical variables in its calculations, allowing investors to make informed decisions and minimize risks.
