Frequently Asked Questions

Backtesting is the process of testing a trading or investment strategy using historical data to evaluate its performance. It helps users assess the viability and potential risks of their strategies before applying them in real-time.

Moreover, backtesting can help you find out what investment strategies work well in which market conditions. For example, you might find out that your strategy only works in a bull market while it is unsuitable for a bear market. Backtesting is also an important step in becoming more rational and data-driven in your investment decisions. This means avoiding strategies that are overly-optimistic or ‘too good to be true’.

Portfolio backtesting provides several benefits, including the ability to evaluate the historical performance of your investment strategy, identify potential strengths and weaknesses, and make informed decisions about future investment choices. It allows users to assess risk, optimize asset allocation, and gain insights into how their portfolio would have fared under different market conditions.

PortfolioMetrics is a comprehensive web application designed for investors to assess the performance and risk of their investment strategies. It allows users to backtest portfolios, compare them to benchmark indices, simulate returns, and optimize asset allocation. The platform provides valuable insights to help users make informed decisions and enhance their investment strategies.

Yes, the main functionality of the PortfolioMetrics is available for free. Users can access core features, including investment strategy backtesting, portfolio analysis and visualization without any cost. See the pricing page with the list of free and premium features.

PortfolioMetrics allows users to input their investment strategies and portfolios, and then tests these against historical market data. The application simulates how the strategy would have performed in the past, providing insights into potential returns and risks.

You have a lot of freedom in choosing your own input factors, such as the timeframe you want to backtest and even the risk-free rate that you want to apply.

The dashboard provides a comprehensive set of financial metrics and charts, including but not limited to portfolio returns, drawdowns, Sharpe ratio, and more. Visual representations help users better understand the strategy's performance over time.

Yes, the PortfolioMetrics is designed to cater to users with varying levels of experience. Whether you are a seasoned investor or a beginner, the user-friendly interface makes it easy to navigate and utilize the platform effectively.

However, it is important to emphasise that while the tool is accessible to anyone, beginners who want to understand the intricacies of financial methods should explore these methods further beyond our tool and learn more e.g. via Investopedia.

Yes, the PortfolioMetrics is actively in development. We are committed to enhancing the user experience and plan to roll out additional features in future updates. Stay tuned for exciting developments that will further empower you in analyzing and optimizing your investment strategies.