We show that the standard Lanczos algorithm can be efficiently implemented
statistically and self-consistently improved, using the stochastic reconfig
uration method, which has been recently introduced to stabilize the Monte C
arlo sign problem instability. With this scheme a few Lanczos steps over a
given variational wave function are possible even for large size as a parti
cular case of a more general and more accurate technique that allows to obt
ain lower variational energies. This method has been tested extensively for
a strongly correlated model like the t-J model. With the standard Lanczos
technique it is possible to compute any kind of correlation functions, with
no particular computational effort. By using the fact that the variance <H
-2>-<H > (2) is zero for an exact eigenstate, we show that the approach to
the exact solution with few Lonczos iterations is indeed possible even for
similar to 100 electrons for reasonably good initial wave functions. The va
riational stochastic reconfiguration technique presented here allows in gen
eral a many-parameter energy optimization of any computable many-body wave
function, including for instance generic long-range Jastrow factors and arb
itrary site-dependent orbital determinants. This scheme improves further th
e accuracy of the calculation, especially for long-distance correlation fun
ctions.