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ToolsI've used a variety of tools to develop the strategies outlined on these pages. Some of these tools are free and easily accessible on the Web, others are subscription services.
In the interest of empowering investors who would like to take the bull by the horns and do their own investigative work or develop their own mechanical trading strategies, here are some of the websites and applications that I've used, or that I'm simply aware of through my own research. |
Overview
There are an increasing number of sources offering backtesting services from the comfort of your desktop computer. By backtesting services, I mean sites that allow you to develop your own trading strategies and backtest them under a variety of hypothetical situations. Some are limited in the scope of the strategies you can put together, others are quite complex and allow a myriad of variables to come into play - if you've got the coding skills.
Some of the more prominent services include:
Then of course, there are dozens of sites that provide portfolio development and management, stock and ETF screening, raw data, analysis, technical charting, and more.
While I haven't tried everything by any stretch, I've sampled here and there. And one of the many conclusions I've drawn is this: complicated is not always better.
If I were to single out a few preferred tools, they would include the following (and I have no financial interests in any of these):
Some of the more prominent services include:
- ThinkorSwim - TD Ameritrade's advanced electronic trading platform.
- Wealth Lab - Fidelity's electronic trading platform and technical analysis software.
- NinjaTrader - Brokerage and trading platform offering strategy development and backtesting.
- Multicharts - Trading platform and technical analysis software.
- AmiBroker - Technical analysis & trading system development platform, with an advanced real-time charting, portfolio back-testing/optimization and scanning capabilities.
- Trading Blox - Trading systems development and backtesting software.
- Quantopian - Free platform and data for inspiring crowd-sourced quantitative investment solutions.
- QuantConnect - Free algorithm backtesting tool and financial data for designing algorithmic trading strategies.
- ETFreplay - Provides analysis and backtesting tools for investors in U.S. exchange traded index funds.
- Portfolio 123 - Backtest portfolio strategies and follow pre-build models.
- Portfolio Visualizer - Free online software platform focusing on quantitative, factor based investing tool.
- RotationInvest.com - Research, analysis and backtesting platform for stocks, bonds, ETFs and mutual funds.
Then of course, there are dozens of sites that provide portfolio development and management, stock and ETF screening, raw data, analysis, technical charting, and more.
While I haven't tried everything by any stretch, I've sampled here and there. And one of the many conclusions I've drawn is this: complicated is not always better.
If I were to single out a few preferred tools, they would include the following (and I have no financial interests in any of these):
ETFreplay.com
ETFreplay.com is a research, analysis and backtesting website primarily developed for ETFs (Exchange Traded Funds). Tools range from ETF screening to building and testing allocation, moving average, and relative strength ETF investment strategies.
This is a subscription site, with a cost of $29.99 per month. For those looking to test the waters, they provide a few completely free backtests and tools. Look for the word "Free" under basic tools and strategies on these two pages: Tools and Backtest.
To go there, ETFreplay.com.
This is a subscription site, with a cost of $29.99 per month. For those looking to test the waters, they provide a few completely free backtests and tools. Look for the word "Free" under basic tools and strategies on these two pages: Tools and Backtest.
To go there, ETFreplay.com.
Portfolio Visualizer
Portfolio Visualizer is an online software platform offering a growing set of tools that lets you backtest asset allocation and portfolio performance, and develop market timing models based on moving averages, momentum, relative strength, target volatility, and more.
They offer considerable free services, as well as two levels of paid subscription plans for even more functionality, as well as the ability to save the models you've constructed.
To go there, PortfolioVisualizer.com.
They offer considerable free services, as well as two levels of paid subscription plans for even more functionality, as well as the ability to save the models you've constructed.
To go there, PortfolioVisualizer.com.
StockCharts.com
StockCharts.com provides high-quality online technical charts for US and Canadian stocks, funds and indexes. The site is also the home of the ChartSchool - the biggest online collection of technical analysis articles available anywhere.
Readers of The 12% Solution and Stock Market Cash Trigger will be familiar with the name. For both strategies, the site provides easy chart construction for our relative strength tests. Specifically, I use their PerfCharts. Here's a PerfChart providing a US market overview using major indices.
The site is free, although 3 subscription plans offer additional functionality and an ad-free environment.
To go there, StockCharts.com.
Readers of The 12% Solution and Stock Market Cash Trigger will be familiar with the name. For both strategies, the site provides easy chart construction for our relative strength tests. Specifically, I use their PerfCharts. Here's a PerfChart providing a US market overview using major indices.
The site is free, although 3 subscription plans offer additional functionality and an ad-free environment.
To go there, StockCharts.com.
ETF.com
A leading authority on exchange-traded funds, ETF.com delivers authoritative news, analysis and education about ETFs online and in print. Although they are a fully owned subsidiary of Cboe Global Markets (one of the world's largest exchange holding companies), ETF.com maintains its editorially independence.
Tools include an exhaustive ETF database and screener, ETFs organized by channels, free newsletters, and extensive guides under the heading ETF University.
If you're working with ETFs, bookmark this site. You'll use it.
To go there, ETF.com.
Tools include an exhaustive ETF database and screener, ETFs organized by channels, free newsletters, and extensive guides under the heading ETF University.
If you're working with ETFs, bookmark this site. You'll use it.
To go there, ETF.com.
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There's more, of course. But this should get you started.
There's more, of course. But this should get you started.