Forwardcaster is an Investment Strategy Builder. We help investors build and test their own long-term investment strategies. Investors can track preferred strategies forward by linking them to a Portfolio Tracker which delivers results each day, week, or month.
Additionally, back-testing by decile means that investors can see whether or not their favourite ratios help to drive investment performance. This helps long-term investors build robust investment strategies and allows for more discipline and objectivity in the investment decision-making process.
Why is this important?
The performance of the investor’s portfolio is more important than the performance of its individual investments. However, without the right tools, it is easy for investors to concentrate on individual wins and losses and lose sight of their overall strategy.
This is especially true for retail investors. They typically don’t have access to the portfolio and risk management tools that institutions use. And so, they invest in a collection of individual investments without a coherent investment strategy or risk management framework. Retail investors, in particular, tend to buy the hot story stocks which inherently come with poor risk/return prospects, and sell after they become disillusioned with their returns.
Forwardcaster’s back-testing engine cuts right through all of that. After running a few strategies, it quickly becomes clear that investing in the hot story stocks is a losing proposition over the long-term. It also allows an investor to create outperforming strategies by sorting through thousands of stocks on a monthly basis over many years based on a range of value-based criteria.