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Trading
Strategy Evaluator (TSE)
A real-world
simulation designed to determine your model's
economic viability
when
subjected to trading costs and limitations.
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The
Trading Strategy Evaluator is the final step in
the backtesting process. It allows you to test
your models' trading characteristics.
With the
Trading Strategy Evaluator you can access your
model's economic viability when subjected to
real-world trading costs and limitations;
perform sensitivity analysis to show how your
model stands up to incensed commissions,
slippage, and other costs; test the effects of
timing strategies and cash positions on your
equity selection model, compare the stocks
selected by you model to the performance of the
stocks you actually held during the test
period.
Before using
the TSE, it is necessary to:
- Understand
the possible limitations and biases of the
data-selection process
- Have a
working knowledge of other Zacks modules
utilized in the preliminary stages of
backtesting
- Develop a
reasoned theoretical model describing the source
or sources of above normal equity
performance
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Internet-Integrated
Applications
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Equity Research Products: