Backtest

You have a masterful strategy. How do you know it works?

Our backtest simulates running your strategy over years, and in a few minutes will give you a very clear idea how your strategy would have done in the past.  We’ll show you 20 years of history, including the dot-com bubble and crash, the Great Recession, and the PIIGS Euro-crisis of 2011.  We include delisted stocks in all of our simulations to prevent survivorship bias.

Discover

What your strategy did over the sweep of time
How many stocks were delisted
How focused on one industry it is
How bad its worst drawdown was
What your strategy bought, and when
What its Sharpe ratio was
How many stocks it held at any point in time

Customize

Stop losses and stop gains
Maximum and minimum holding periods
Position weighting, including long/short
How bad its worst drawdown was
What your strategy bought, and when
Number of stocks to buy
Variables to plot
Indexes to compare against

How Backtesting works

Imagine you’d read in a book to look for some strategy that claimed that growth was key.  You put it in our system, and you get this:

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Disappointed, you almost throw the book away.  But then you start tweaking, and get something that actually outperforms.

If you’d read a newsletter selling this strategy below, you might be happy with the performance.

Presented with a graph, and the backtest by time, and you see that the performance is not so good recently.

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So you make some more tweaks and arrive at this:

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This is clearly what the doctor ordered (yes, we know it may not hold up in the future!).  It outperforms almost every year.

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And we run the numbers for you, so you can compare it against others.

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