Backtesting is a powerful tool that simulates how a particular strategy or model would have performed on historical data. This process allows investors to evaluate the effectiveness of investment decisions based on past market data without risking actual capital.
How to Use This Tool
1. Select Valuation Methods: Choose the valuation methods you believe best represent the true value of the stocks you're interested in.
2. Define Trading Criteria: Specify the buy/sell conditions based on the stock's valuation relative to its market price.
3. Run the Backtest: Initiate the process to see how your strategy would have performed historically.
3. Analyze Results: Review the outcomes to refine your investment strategies and improve future decision-making.
By leveraging historical data, backtesting provides a window into how investment strategies might perform under similar market conditions, offering invaluable insights for future investments.
Note: Past results don't guarantee future performance.
