Critical Monte Carlo Software Functionalities You Need Author: Financial-edu.com
It could be hard to understand how to pick the right Monte carlo software to meet your needs. Here we talk about a few factors to consider that will help you make the best choice. These are a few of the crucial functions to look out for:
How much processing speed do you need? Monte Carlo software is known for hefty use of available CPU, memory, and data storage space. Consequently, you want to manage your simulations with a desktop, laptop computer, cloud or grid with enough computing capacity to guarantee fast results. At a minimum, the system should have two gigabyte of RAM (ideally more) and a CPU capable of multi threaded computations. Otherwise your simulations will last far too long or you will need to reduce the amount of data you use.
Can the software keep all of the input and results data for future analysis? This is critical for being able to check different simulation runs, and to back test the simulation results against real events and results in the future. It's also essential for auditing the results, in the event you are asked by an auditor or controller to demonstrate the accuracy of the tool you are using.
Precisely what operating system have you got on your computing platform and will the software work with it? The majority of computer systems used for business and investment analysis are Windows-based. Almost all Monte Carlo programs will work on Windows computers. If you are using the Apple operating system, Unix, or other operating software, you need to be certain the software is designed for your platform. In addition, you need to be sure the software runs using your specific operating system edition, and updates are going to be available for future variants of your operating system.
Can the software output graphic demonstrations of the Monte Carlo simulations? Presenting large amounts of data in a visual manner by way of graphs, charts, histograms, scatter plots, and so on is critical to be able to quickly analyze and translate the simulation results. At the very least, you need probability distributions represented by histograms. You must also seek out cumulative probability distribution charts, tail exploration, maximum and minimum volume events.
From what was discussed above, there are a number of key factors to consider when purchasing Monte Carlo software.