Backtesting – how to run a backtest

Running a backtest is one of the most useful ways for investors to find a good investing strategy. Here we provide some quick tips to help you run a backtest and use the results effectively.

  1. As a subscriber, you can run a backtest on any screener strategy – either the prebuilt strategies, or your own.
  2. Prebuilt screens: When you visit a screener strategy, a menu opens up on the left side:Screen Shot 2018-05-02 at 12.17.57 PM
  3. The screener backtest link above once clicked, shows you the backtests already run on the strategy. Nearly all the pre-built strategies on the platform already have backtests that have been run on them. (A few strategies that contain metrics like  “Prev Day Momentum Score” are not eligible for backtests since this metric is currently not backtest-able). “Prev Week Momentum Score” is now backtest-able.
  4. If you are on a pre-built system screener, you will see this message in the screener section:

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Clicking on the “clone this screener” link allows you to copy this screener and make it your own, so that you can run a backtest.

The clone this screener option copies the query used to make the screener strategy into a new text box. For example:

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The box is editable, so you can change the numbers and metrics around if you like, before saving the strategy. You can save it as your own:

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Once you save the screener as your own, go to the screener backtest section on the menu to run a backtest. You can choose to run a backtest quarterly, monthly, weekly or daily:

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You can also edit the time period of the backtest by clicking on the date ranges:

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You can also choose the universe of stocks you are choosing to run the backtest on. It can be an index, your portfolio, or your watchlist:

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You can also choose the benchmark returns you are comparing this to. The default selected is Nifty500, so it will compare the strategy performance to how the Nifty500 performed during that same period.

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Once you have made your selections, click on ‘Run Backtests”. The result will be available in under three minutes.