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Overview
Backtesting is a process that helps traders understand how certain financial instruments would have performed in the past, provided a particular mechanical trading system had been used to trade them.
The process of backtesting had to be performed on different sets of counter-cyclical stock based on several investment policies in order to identify the policy that could give good returns even in a stock market down-trend.
Customer
A Portfolio Management Firm - MA
Customer’s Challenges
The firm was spending a lot of valuable time and effort on backtesting.
Flatworld Solutions’ Back-Office Services Provided
- Data pertaining to several years was extracted from VectorVest
- Investment policies for testing were formulated
- Market indicators and their values were selected
- A basket of counter-cyclical stocks was created
- Backtesting was performed for the past 10 years by using the FastTrack Software
Impact on Customer’s Business
- The cost of resources and other costs were reduced drastically
- The customer experienced a faster turnaround time
