Tolerance

Tolerance, the simulation error tolerance, is an alternative to choosing the number of simulations for controlling the precision of the solution. To implement, enable Optimization Tolerance in the Advanced Options sub-menu within the Options Menu, then enter the desired maximum standard error in the Tolerance Field in the ribbon. The Optimizer will run simulations until that standard error is met  as shown on the Portfolio Convergence statistic on the progress bar. A 1% standard error provides a rather rough solution. New Frontier recommends starting experimentation with 1% and narrowing it down to 0.5% or even 0.1% for investment purposes. Note that an optimization with a 0.1% tolerance may require many simulations, take a long time to complete, and even cause out-of-memory errors on some computers.

If the Rebalance Simulations Field is set to N/A, enabling optimization tolerance automatically sets the number of rebalance simulations to 500.