Trustia Docs
  • Welcome to Trustia's Documentation
  • Systematic Investing
    • Introduction
    • Guide to launch your strategy
      • Requirements
      • Step 1 - Strategy Configuration
        • Weighting Selection
          • Strategy Selection
          • Minimum and Maximum Allocation Selection
          • Additional Parameters selection
        • Ocurence rebalancement Selection
        • Capital Protection Configuration
          • Enable Capital Protection
          • Floor Percentage Configuration
          • Multiplier configuration
        • Exchange configuration
          • Exchange API Key
          • Invested Amount
        • AI Asset Selector
          • Asset Pool Size
          • Include / Exclude Categories
        • Validate the configuration
      • Step 2 - Assets selection
        • Auto-suggest
        • Add / Select Assets
        • Search Assets
        • Validate Assets selection
      • Step 3 - Backtest & launch
        • Compare your results
        • Global Information
        • Performance
        • Returns metrics
        • Ratios Metrics
        • Volatilities Metrics
        • Value at Risk Metrics
        • Trustia Charts Generator
          • Portfolio Performance
          • Drawdown
          • Weightings
          • Portfolio vs Components
          • Ratios Analysis
          • Efficiency Frontier
          • Historical Volatility
          • Values at Risk
          • Covariance Matrix
          • Correlation Matrix
        • Launch your Strategy
    • Features
      • Innovative Weighting Strategies: A Customized Approach
      • Dynamic Asset Allocation
      • Capital Protection
      • Backtesting
    • Algorithms Models
      • Equal
      • Market Capitalization
      • Maximum Sharpe Ratio
      • Minimum Volatility
      • Efficient Risk
      • Efficient Return
      • Maximum Return / Minimum Volatility
      • Inverse Variance
      • Maximum Diversification
      • Maximum Decorrelation
    • Available Trading Platforms
      • Binance Connect
      • Kucoin Connect
      • Coming Soon DEX / CEX
  • Risk management Framework
    • Capital Protection
    • Risk Measures
      • Average Returns
      • Adjusted Returns
      • Volatility
      • Maximum Drawdown
      • Downside Deviation
      • Ordinary Least Squares Method
    • Values at Risk
      • Historical VaR
      • Variance-Covariance VaR
      • Monte Carlo VaR
    • Ratios
      • Sharpe Ratio
      • Calmar Ratio
      • Treynor Ratio
      • Sortino Ratio
    • Backtesting Framework
      • Features
      • Monte Carlo Simulations
  • Others
    • Release notes
    • Support
      • Known Issues
    • FAQ
  • Connect With Us !
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  1. Systematic Investing
  2. Features

Backtesting

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Last updated 1 year ago

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Backtesting Strategy

Backtesting is an essential step in the systematic portfolio management process, offering investors insights into how their investment strategies would have performed historically. Our Backtesting module utilizes powerful statistical algorithms to simulate the execution of your tailored investment strategy on past financial data, providing a data-driven basis to anticipate potential future performance.

Our Backtesting employs historical simulation to provide a realistic perspective on how an investment strategy would have performed over time. It accounts for periods of market volatility, economic cycles, and major financial events to offer a comprehensive analysis of strategy resilience.

By comparing the historical performance of various weighting strategies, from Equal Weighting to Maximum Diversification, investors can validate the robustness of their chosen approach. This validation helps in refining strategies to better suit risk tolerances and return objectives.

The backtesting process also involves a thorough risk assessment, allowing investors to see not just the returns but also the potential risks involved with their investment strategy over time. Metrics such as maximum drawdown, volatility, and Sharpe ratio are used to quantify risk.

We provide a suite of performance metrics that detail the gains, losses, risk-adjusted returns, and other key indicators of the portfolio's past performance. These metrics are critical for assessing the effectiveness of the chosen asset allocation and weighting strategies

🔗 Learn more about Backtesting
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