Greetings --

Mike's comment is correct --

As for the value of Monte Carlo (MC) vs. Walk Forward Analysis (WFA). My
view is that the two are not mutually exclusive, but rather are
complimentary. Your out of sample (OOS) results from WFA are exactly the
right kind of inputs for MC analysis.

-------------------

I would make the statement even stronger.  The input to a Monte Carlo
Analysis _must_ come from strictly out-of-sample results.  One way to get
these is from the OOS runs of walk forward analysis.  Another is the trades
observed after the system being tested has been finalized.  Either paper
trades or actual trades count, provided the system has not been modified
during that period.

Thanks,
Howard

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