EzBackTest is a free software to Backtest portfolio to see its historical performance. You can create a virtual portfolio of any combination of stocks, and see how it performed historically in comparison with market indices. This helps you in determining if the portfolio can be a good investment for future.
Backtesting is a common finance tool that lets people test their portfolio with real historical data. Here is what Wikipedia says about Backtesting:
backtesting is a specific type of historical testing that determines the performance of the strategy if it had actually been employed during past periods and market conditions. Since backtesting uses real-world data, it has advantages over testing with synthesized data sets. While backtesting does not allow one to predict how a strategy will perform under future conditions, its primary benefit lies in understanding the vulnerabilities of a strategy as it encountered real-world conditions of the past. This enables the designer of a strategy to “learn from their mistakes” without actually having to make them with actual money..
EzBackTest is a free software that makes it extremely easy to Back test a portfolio on your computer. Let’s say you are planning to add a few stocks to your portfolio, but you want to first see how did that portfolio performed historically. For that, you can just specify tickers of those stocks in EzBackTest, specify the months for which you want to see historical performance, and EzBackTest will pull corresponding data from Yahoo Finance and plot it in a nice graphical form.
While creating a portfolio of stocks that you want to Back Test, you can specify percentage of allocation of each stock to your portfolio, or choose to allocate each stock equally. Here is tutorial to use EzBackTest.
Some other stock tracking software that you can also try are: JStock, AceStock, and Quote Tracker.
Here are some of the features of EzBackTest:
- You can setup multiple virtual stock portfolios on your computer, and Back Test them any time.
- All the stock quote information is pulled from Yahoo Finance, so you can be assured of accuracy of stock data.
- You can choose allocation percentage of different stocks in portfolio.
- Performance of portfolio is plotted along with performance of S&P 500, so you can see if your portfolio is outperforming the market indices.
- It also lets you compare saved portfolios. You can create Sharpe Plots, Monthly Performance graphs, Sharpe Bars, and year over year returns.
- Once you have setup a portfolio, you can calculate portfolio’s dividend yield, sharpe ratio, annualized returns, and standard deviation.
- Completely free for personal use.
EzBackTest is completely free, and very simple to use. BackTesting a portfolio can be a pretty complicated exercise, but EzBackTest makes it so simple that anyone can try that.
Download EzBackTest free.
Just viewed your demo video. Very impressive work.
I installed the backtest software, but am getting a “failed to download” error for any ticker I input for portfolio.
Any ideas why that might be occurring?
@John: Not sure what might be the problem.