Phase 13 // Course Syllabus Chapter
Monte Carlo Simulation — Stress-Testing Your Strategy Against Randomness.
Part of our masterclass path. We systematically cover risk, logic, and mechanics to build professional edge.
Floor Tier Access 25 min read / 15 min video
01_Curriculum_Brief
What is covered in this chapter
Stress-Testing Strategy Longevity
If your backtest of 100 trades has a 60% win rate, you might still experience a string of 10 consecutive losses purely due to random distribution. Will your account survive that streak? Monte Carlo simulation answers this question.
The Simulation: A Monte Carlo simulator takes your backtest trade list and randomizes the order of execution thousands of times. It calculates the probability of your account hitting various drawdown thresholds (e.g. the probability of hitting a 10% drawdown) during these randomized sequences.
If the simulator shows a high probability of hitting maximum prop firm drawdowns, you must reduce your risk per trade before going live.
Interactive Lesson Locked
Unlock Full Academy Access
Paying dashboard members get access to the high-definition video walkthroughs, interactive quizzes, downloadable PDFs, and community chat channels for this module.
Phase 13 Chapters
01What Backtesting Actually Tells You — and What It Lies About02Manual Backtesting Method — The Right Way to Do It in TradingView03Defining Your Strategy Rules With Zero Ambiguity04Sample Size — How Many Trades Before Your Data Means Something05Key Metrics — Win Rate, R:R, Expectancy & Profit Factor Explained06Forward Testing and Walk-Forward Analysis07Monte Carlo Simulation — Stress-Testing Your Strategy Against Randomness08Using the Drawdown AI Backtester Tool — Live Walkthrough