Back-test by decile

Backtest by decile

We've ranked the ASX by company size and yearly price momentum. Is it better to invest in large companies with strong price momentum versus small companies with poor momentum? As you'd expect, it is, however, a few unexpected and important insights occured. Firstly, the very largest companies with the strongest price momentum did not perform particularly well...

Welcome to Forwardcaster

We have recently upgraded to Captial-IQ's global point-in-time fundamentals database. This means that you can build and test your investment strategies using the highest quality fundamentals database available.

Piotroski: neglected stocks

The strategy focuses on looking for the highest quality stocks amongst the 20% best value stocks on the market (as defined by a low price to book value). Companies with low price to book ratios tend to have low levels of investor interest, be neglected by the analyst community, and be in financial distress. They are considered ‘value’ stocks because they are cheap, but are often cheap for a good reason. 

O’Shaughnessy’s Tiny Titans strategy

These stocks have little analyst coverage and are generally ignored by institutional investors. This should mean that there are more opportunities for out-performance within this group of stocks as compared to the market as a whole.

Mechanical Buffett

We're not claiming an automated Buffett strategy will out-perform Buffett, but we think it is a useful exercise to see how Buffett concepts and metrics perform over the long-term using rules-driven approach.

Ken Fisher: low price-to-sales 

Kenneth Fisher highlighted the use of the price-to-sales ratio as a quick and easy metric to find potentially undervalued companies. He reasoned that, "any stock with a low price relative to its previous 12-month sales would rise if its future earnings became large enough to translate into a low future PE"

Solution

We offer investors the ability to test before they invest. This gives them a rational basis for improved investing performance. Having the evidence on hand, and knowing what to expect, allows an investor to stick with their strategy during the tough times. In short, a back-testing engine allows for clear, structured decision-making and it empowers an investor to invest with discipline.

What do we do?

We offer investors the ability to build and test long-term equity investment strategies. Strategies are based on factors which tend to result in superior returns. Such as value, size, quality, momentum, efficiency etc. Automatic updates allow our users to run ‘live’ strategies