Portfolio Backtesting

Backtesting is the process of testing a trading strategy on historical data to see how it would have performed in the past ². Here are some basic steps that you could take when carrying out a manual backtest ¹:

How to use XStocks to back test your portfolio

1. Define the strategy parameters. 2. Specify which financial market and data timeframe the strategy will be tested on. 3. Begin looking for trades based on the screens you have setup. 4. Specify your holding period.. 5. The system will find gross returns of all trades between rebalancing days. It will calculate the returns through the entire timeframe with automatic rebalancing done as per the schedule based on end of day data. 6. To find net return, deduct any commissions and trading costs related to the trades from the gross return.

Video on how to do it on Xstocks

Here's a details video where you can see and learn how to setup your strategies and run them.

(1) Backtesting: Definition, How It Works, and Downsides - Investopedia. https://www.investopedia.com/terms/b/backtesting.asp. (2) Backtesting: Manual Strategies for Trading | CMC Markets. https://www.cmcmarkets.com/en-gb/trading-guides/backtesting. (3) Top 12 Backtesting Software for NSE Stocks & Options in India - Techjockey. https://www.techjockey.com/blog/best-backtesting-software. (4) Backtesting - Overview, How It Works, Common Measures. https://corporatefinanceinstitute.com/resources/data-science/backtesting/.