Monte Carlo Drawdown Simulator |
Signal Rating:
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Updated for the market open on Monday, May. 21, 2012 |
The Monte Carlo simulatior estimates performance by simulating a $5,000 investment always in the market.
A summation is created using one year of random daily drawdowns from random trades over the past two years. This
process is repeated 10,000 times to yield the distribution below. From statistics, one standard deviation (1 sigma) indicates a
16% likelyhood of incurring the 1 sigma drawdown shown and a 2% likelyhood of the 2 sigma drawdown. The calculation makes no allowance for slippage or commissions.
Important Note: Monte Carlo results shown below are hypothetical based on past performance. Please see our terms for details.
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Most Likely Annual Drawdown : |
$1,890 |
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Reward / Risk Ratio : |
2.2 |
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1 Sigma Drawdown Projection : |
$2,610 |
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2 Sigma Drawdown Projection : |
$3,390 |
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