Simulation Summary

Backtester challenges students to design an original investment strategy and test how it would have performed against historical market data. Using the application’s step-by-step “wizard” interface, students define each attribute of a backtest, from basics like names and dates to more complex choices such as the number of securities per portfolio, their weights, and how often the portfolio is rebalanced.

Once students select their screening criteria and partitions, they run their backtests against a wealth of Wharton’s archived financial data, stored in the app and ready for use. Backtests can be saved and executed at the user’s convenience, making it easy to revisit, adjust, and rerun a strategy.

Results appear across a series of portfolio analysis screens covering portfolio values, security count, and returns and rates of return over time, along with a summary that recaps the test’s parameters and investment performance. Using these in-app analytical tools, students review and assess their outcomes.

Developed in collaboration with award-winning Wharton Professor of Finance Robert Stambaugh, Backtester is a flexible, user-friendly platform that can be tailored to fit virtually any class assignment. It remains one of the most effective tools for reinforcing core academic concepts in finance, without the complexities and costs of a commercial backtesting product.