Development of a Backtesting Web Application for the Definition of Investment Strategies

Abstract

Backtesting represents a set of techniques that aim to evaluate trading strategies on historical data in order to verify their effectiveness before applying them to a market in real time. This requires processing large amounts of data from different periods and applying different simulation techniques to them. In general, these types of tools are not very popular for reasons such as the amount of data that must be evaluated and maintained, the computational resources that are required, and the need to have a deep conceptual understanding of these techniques in order to use them. This article presents a web application that implements a set of backtesting functionalities that allow evaluating different trading strategies, managing portfolios, representing the results of simulations, and optimizing a stock portfolio, all from an intuitive and visual interface that makes these techniques accessible to new investors in this field.

Keywords

• backtesting
• strategy
• trading
• trader
• portfolios
• quantitative finance