Controlling Complexity in Trading Systems.

The development of trading systems can achieve high degrees of complexity. The process of simulating a particular strategy, termed backtesting can be triggered in several stages of optimization, and monitored at various levels of automation.

Developers always seek out new strategies or logical combinations. A system composed of a set of modules, which are interconnected, could trigger many situations.

The algorithmic complexity that can arise from this process is very high and if not taken care of organizing the evolution of codes, it is possible that errors can be observed as recorded in Knight Capital.

Modules that, being in great quantity and interconnected, go through changes at different times, and, may generate imbalances in the flow of information.

It's not it, but we say it is, to see, how it would be, if it was!

I heard this definition of simulation when I was an undergraduate student. Because it was funny and intuitive, I found it very interesting to use this term to define simulation.

The great utility and insight behind this definition is the ability to simulate what I wish.

That is, the author of the phrase is not worried about obeying any rules or fixed protocols. Rather, he is concerned to investigate and be flexible.