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Monte Carlo Shuffled Projection

By LuxAlgoMay 2, 2024

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Monte Carlo Shuffled Projection turns recent history into a fan of hypothetical futures. It gathers every bar-to-bar change from a user-set lookback window, shuffles their order, and compounds each reshuffled sequence forward from the latest close: the Monte Carlo method applied to the exact changes your chart just produced. Up to 1,000 simulations are distilled into an Average Line, with standard-deviation lines framing probable territory, support, and resistance.

Because each path reuses the window's real changes, endpoints align with the lookback's slope; the Randomize Direction option flips values at intervals for a broader, less trend-biased range.

How to Trade the Monte Carlo Shuffled Projection?

  • Average Line: the mean of all simulated paths, a central estimate of where price could drift if the window's trend and volatility persist.
  • Standard-deviation lines: averaged across the full simulation set; treat them as a probabilistic envelope for targets and for judging when a move has outrun recent behavior.
  • Visualized paths: enable the individual simulations (the last 99 are drawn) to see how widely outcomes disperse before leaning on the average.

The projection is resampling, not prophecy: it maps the range of outcomes the recent window could plausibly generate, better for stress-testing expectations than for timing entries on its own.

Monte Carlo Shuffled Projection Settings

  • Lookback: how many bars feed the simulation.
  • Simulation Count: number of shuffled paths, up to 1,000. More runs steady the Average Line.
  • Randomize Direction: inverts shuffled changes at intervals for a more normalized distribution of endpoints.
  • Visualize Simulations: draws individual paths in randomly picked colors; only the last 99 show.
  • Standard Deviation Multiplier: how far the deviation lines sit from the central line.

Frequently Asked Questions

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MetaTrader 4/5
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