Backtesting
Feasibility Analysis 27% Annualised Return
This summary page presents an outline of the approach Cosmic Algorithm Ltd (CAL) undertook when developing the Backseat-Trader algorithm.
The chart on the left is a comparison between the algorithm's historical equity curve versus the value of SPY, QQQ, and SPY-AGG 70/30 portfolio equity curves. All systems are rebalanced monthly with US$10,000 initial investment. There is no capital reinvestment assumed.
CAL can supply the back-testing data used in electronic format, upon request.
A momentum-based semi-automated stock rotation system. Only long positions are traded. The system tracks NASDAQ index components on a daily basis and selects the top 20 best performing stocks of the index. The selection is rebalanced once per month which increases return and reduces volatility.