Discrete-Event Simulation vs Vectorized Backtesting: When Each Matters [2026]
Date Published
1. Two Paradigms of Quantitative Simulation
Speed vs Structural Realism
Vectorized backtesting evaluates strategy returns in seconds using matrix operations. However, vectorized math assumes fills happen at exact closing prices. Discrete-event simulations model real-world trading mechanics by delivering ticks chronologically through an event queue.
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