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.
The pure
and simple simulation (backtesting) argues and justifies strategies in High
Frequency Trading, as it depicts an alternate reality. You can return to the
past.
Like any
representation of the real fact, simulation can bring risks to the analysis,
Read more
at:
However,
the power that it has to estimate and project the behavior of the system is
used as a guide to the entire development cycle of the investment strategy.
The technique of simulation and backtesting allowed the quantitative style of
financial management.
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