MONTE CARLO SIMULATION
Let us assume we have a specified string of profits and losses — for example, the 1985-89 string of profits and losses for
the 25-market portfolio used in the article. The Monte Carlo simulation is the technique we use to determine the probability
of losing a specified number of dollars when trading this string of profits and losses before reaching a specified profit goal.
The technique simulates how a trader would fare if he were to sequentially place trades that were randomly selected from
the specified listing of profits and losses.