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» Wizard Interface
When students log into Backtester, they can either choose to view the results of a previously run test or they can create a new test. Clicking the add button initiates a wizard interface that will guide students through the process of defining test parameters.Students can control various aspects of their backtest depending on their goals and the class assignment. These variables include the name of the test, start and end dates, number of securities per portfolio, type of portfolio weighting, and re-sort frequency.
By default, all available securities will be considered for inclusion in the backtest unless the student narrows the list by adding one or more screening criteria. Backtester screens act as filters for the security list and are based on metrics such as market cap, book to market ratio, price to earnings ratio, lag returns, and price.
Students may optionally create distinct portfolios by dividing securities into partitions based on the value of one or two metrics. By default, Backtester creates a single portfolio according to a student’s choices in the first two steps of the wizard.
The final screen of the wizard allows students to review the selected parameters of their backtest and either return to make changes or finish and save changes. Once a test has been saved, it is ready to be run against the historical financial data stored in the application.