Wednesday 13 August 2008

RELIABILITY OF SIMULATORS

Trading simulators vary in their reliability and trustworthiness. No complex software, and that includes trading simulation software, is completely bug-free.
This is true even for reputable vendors with great products.
Other problems pertain to the assumptions made regarding ambiguous situations in which any of several orders could be executed in any of several sequences during a bar.
Some of these items, e.g., the so-called bouncing tick (Ruggiero, 1998), can make it seem like the best system ever had been discovered when, in fact, it could bankrupt any trader.

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