I need to programm a Monte Carlo Simulation for a seminar paper. The simulation is supposed to apply different portfolio insurance strategies like e.g. synthetic put or constant proportion portfolio insurance. The data, on which the simulation should run, should be the US Stock Market for the past 20 or 30 years. In the end, I am supposed to put the cumulative prospect theory into the code and tell what components of the CPT drive investor preferences.
I do not even really know how to start coding this. I only know in theory that I need to start with building a model that fits my problem.