Monte Carlo Simulation Report
The results of the Monte Carlo Simulation are displayed in a graph below the parameters.
The horizontal axis of the Monte Carlo Simulation graph shows the percentage of simulations that have fallen below the Y - axis value. For example, if you run a Monte Carlo Simulation setting the # of Simulations to "100" and using the Cumulative Profit graph, the intersection of the 50% X - value and the associated Y value means that 50 of your simulations will be below that cumulative profit/loss value, and oppositely the remaining 50 simulations will have a greater cumulative profit/loss. The above screenshot shows an example of a worst case scenario of the strategy losing $5602.50 and a best case scenario with the strategy making $2801.25. This type of report allows you to analyze if the risk/reward ratio between worst and best case scenarios is acceptable or not.
The vertical axis of the Monte Carlo Simulation graph displays the measured unit for the Graph item selected such as Profit/Loss, statistical information, or time.