Backtesting: Turning Uncertainty into Confidence
You don't need a crystal ball when you have history on your side. Backtesting lets you trade with the confidence of knowing your strategy has already been through the wringer and came out on top. It's the difference between guessing and knowing.
Want to:
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Know What Works?
Stop guessing. Backtesting separates the winning strategies from the ones destined to fail.
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Understand the Real Risk?
See how your strategy holds up in a crash. It gives you the confidence to stay the course and have honest conversations with clients about risk.
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Show, Don't Just Tell?
Walk into client meetings with proof, not promises. Backtesting turns vague pitches into fact-based plans that build real trust.
In short, backtesting isn't just a tool; it's your edge in portfolio management. It helps you validate, risk-assess, gain confidence, and communicate effectively, making it indispensable for any advisor aiming to excel in managing portfolios.
Some pitfalls of back-testing
We eliminate this by including data on all stocks—even those that have been delisted or acquired—for a more realistic view of the market.
We combat this by keeping our process simple and testing models across different markets and time periods, ensuring our strategies aren't just cherry-picked.
We use extensive historical datasets, some going back to 1974, to provide a broad, long-term perspective on how our strategies perform.
We use point-in-time data, which means our backtests only use information that was actually available at the time of the decision.
Our process is fully transparent. We detail how our data is sourced, adjusted, and analyzed so you can trust the results.
Our backtesting isn't just theoretical. We account for real-world factors like transaction costs and market liquidity that can affect performance.
It's time to stop overpaying for underperformance. See for yourself why top advisors are making the switch.
Imagine the relief of letting go of day-to-day market noise. A backtested model might not win every day or even every year, but it gives you the confidence that over time, it's built to outshine the benchmarks.