Case Study on Equity Research Back Office Services

Backtesting is a process that helps traders understand how certain financial instruments would have performed in the past, provided a particular mechanical trading system had been used to trade them.

The process of backtesting had to be performed on different sets of counter-cyclical stock based on several investment policies in order to identify the policy that could give good returns even in a stock market down-trend.

A Portfolio Management Firm - MA

The firm was spending a lot of valuable time and effort on backtesting.

• Data pertaining to several years was extracted from VectorVest
• Investment policies for testing were formulated
• Market indicators and their values were selected
• A basket of counter-cyclical stocks was created
• Backtesting was performed for the past 12 years by using the FastTrack Software

• The cost of resources and other costs were reduced drastically
• The customer experienced a faster turnaround time