Simulations & Backtesting

We've been using simulations and backtests for a very long time internally at Mahi and they are fundamental to our methodology

Benefits

Why learn in production with capital at risk if you can help it?

We've run hundreds of thousands of hours in 24/5 production trading systems across multiple banks and brokers. But we've run and learned from millions of hours in simulations.

Accelerate your learning via simulating various problems within the trading space.

Confirmation of qualitative analysis? Or preventing unintended butterfly effects being felt elsewhere? Help avoid configuration recency bias

Combinatorial parameter search => which parameters produce the best results?

Operational safety / confidence => It's got to have worked in a simulation before turning it on in production

Software Quality. We run the same code in production as used in simulations. Therefore we avoid implementation risk of quantitative models where one thing is used for analysis and then a best approximation is run for low-latency trading.

Verification that configuration changes would have solved the problem. Pre and post change simulations.

Simulations in Echo

We're making available some of the simulations we use to our Echo & Compass clients

Learn more about them here