This flexible backtesting application enables students to design and test their own investment strategies while analyzing an array of plausible, data-driven outcomes.
Developed in collaboration with award-winning Wharton Professor of Finance Robert Stambaugh, Backtester is the premiere learning platform for designing and testing investment strategies that effectively reinforces the academic concepts without the complexities and costs of a commercial backtesting product.
Backtester has two major functions that can be tailored to fit virtually any class assignment:
1. setting up and running a backtest;
2. analyzing the results of each test.
First, students create an investment strategy through Backtester‘s “wizard” interface. The wizard then guides them through the process of defining a backtest’s attributes, which can be saved and executed at the user’s convenience. Once the test has been run and the results have been generated, students can utilize a variety of in-app analytical tools to review and assess their outcomes.
Creating a Backtest:
Depending on a given course’s pedagogical goals and class assignments, students have the ability to control different aspects of their backtests, exploring variables as simple as the name of the test and start and end dates, to the number of securities per portfolio, their weights and rebalancing frequency.
Once the screening criteria and partitions are selected, students are able to run their backtests against a wealth of Wharton’s archived financial data, which is stored in the app, ready for use.
Backtester also contains multiple portfolio analysis screens for deciphering test results, like values, security count, returns (and rate of returns) over time, and a summary that recaps the test’s parameters, displaying investment performance info.
For more information about Backtester, email the Learning Lab team at: firstname.lastname@example.org.