Getting Started

This guide will walk you through setting up your first simulation in Edge Engine.

Your Trading Stats

The foundation of every simulation is your trading statistics. You’ll need:

• Win Rate — the percentage of trades that are winners
• Average Win — your average winning trade, measured in R-multiples
• Average Loss — your average losing trade, measured in R-multiples

What’s an R-multiple? R is your risk per trade. If you risk $100 and make $200, that’s a 2R win. If you risk $100 and lose $80, that’s a 0.8R loss. Measuring in R-multiples lets you analyze your strategy independent of position size.

Expectancy

Your expectancy is the average R you earn per trade, combining your win rate and your average win and loss:

Expectancy = (Win Rate × Avg Win) − (Loss Rate × Avg Loss)

A positive expectancy means your edge makes money on average. A negative expectancy means the opposite: no amount of position sizing or risk management will make a losing expectancy profitable over time. Edge Engine surfaces your expectancy in the Performance Stats section after a simulation runs.

Running a Simulation

1. Enter your trading stats in the Simulation section of the sidebar
2. Set the number of trades to simulate and your daily trade range
3. Click Run Simulation
4. Explore the results in the tabs on the right

Simulation count and run time: The default is 25,000 simulations, which completes almost instantly. You can increase this up to 100,000 for tighter percentile estimates — higher counts and longer trade sequences both increase computation time, though all simulations run in a background thread so the interface stays responsive.

Understanding the Results

After running a simulation, you’ll see several tabs of analysis:

• Equity — shows the range of equity curves across all simulations, from the 5th to the 95th percentile
• Drawdown — visualizes the drawdown distribution and how long drawdown episodes typically last
• Streaks — the distribution of winning and losing streak lengths, plus post-streak win rate analysis
• Performance — detailed statistics including return percentiles, Kelly criterion, Sharpe ratio, and a month-by-month trading calendar

Next Steps

Once you’re comfortable with the basics, explore the more advanced modes:

• Simulation Mode — full documentation of all parameters and output tabs
• Eval Mode — model your chances of passing a prop firm evaluation
• Funded Mode — simulate funded account payouts and survival
• Fleet Mode — model multi-account prop firm strategies