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Monte Carlo Simulation: What Your Backtest is NOT Telling You

30 April, 20263 April, 2026 by Sigur Montoya
Monte Carlo simulation with dice and line graph illustrating data variability.

A method born in a nuclear weapons lab. Now the most honest tool a trader can use. Your Backtest Is Lying to You You run a backtest. It shows a maximum drawdown of 12%. You size your position accordingly, set your risk limits, and go live. Three months later, your account is down 28%. The … Leer más

Categories Trading Tags Trading Tools

Why Trading Strategies That Work in Backtest Fail in Live Markets

26 April, 20262 April, 2026 by Sigur Montoya
Illustration of savings and inflation with a downward arrow and coins.

For everyone who has ever seen a perfect equity curve on TradingView and then lost real money. The Moment Every Trader Knows You spent weeks developing a strategy. The backtest shows a Sharpe ratio of 2.3, maximum drawdown of 8%, 67% win rate. The equity curve climbs without stopping. You go live with real capital. … Leer más

Categories Trading Tags Trading Essentials
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