Topic: Question About Monte Carlo Testing
I understand there are different things you can randomize when performing Monte Carlo testing. The simplest one would be to randomize the order of the transactions, looking for potential large draw downs. In this case the balance curves would look different but, in the end, they would all come together and have the same final balance (following the cumulative rule of addition).
When I perform a Monte Carlo test and only select "Randomize History Data" then I expect all the balance curves to end with the same final value -- but they don't. Why is that? I guess I'm assuming "Randomize History Data" is the same as randomize transactions -- but perhaps it's not.