Getting started

1. Introduction

New to the website? No worries! We've provided tutorial videos and notes to guide you along the way.

The website is split into 4 main sections found in the top navigation bar. The screening tool, the backtester, your backtest results, and your live backtests results.

2. Screening Tool

The screening tool is used to filter stocks based on a certain criteria such as selecting the top 100 stocks with the highest market cap.

Stocks that pass the screen are selected to form an investment universe. You will then be able to create a backtest using stocks from this investment universe.

3. Fundamentals Backtest

The Fundamentals Backtest selects the top few stocks with the strongest fundamentals among all stocks to form a portfolio during each rebalancing period.

You will be able to decide on which fundamental factor (such as the price to earnings ratio) and the weightage of each factor used to rank your stocks.

View our full tutorial

4. Relative Strength Backtest

The Relative Strength Backtest selects the top few stocks with the strongest signal among all stocks to form a portfolio during each rebalancing period.

You will be able to decide on which signals (such as the 6 month return) and the weightage of each signal used to rank your stocks.

You may also choose to screen your stocks to select stocks that are above their moving average before ranking them.

5. Strategic Allocation Backtest

The strategic allocation backtest simply rebalances the portfolio to a target allocation during each rebalancing period. You will be able to specify the target weights for each stock in your portfolio.

For example, to create a 60-40 stock bond allocation, you will assign stocks a target weight of 60% and bonds a target weight of 40%.

During the backtest, if the price of your stocks go up, the strategy will sell some of your stocks and buy bonds during rebalancing to achieve the target weights.

View our full tutorial

6. Moving Average Backtest

The moving average backtest selects stocks that are trading above their moving average to form a portfolio. You will be able to specify whether you want a fast moving average for short term trends or a slow moving average for long term trends.

You will also be able to build your own custom signal to rank stocks that are above the moving average.

During the backtest, if a stock falls below its moving average, it will be replaced with another stock that is above its moving average with the strongest signal.

View our full tutorial

7. Backtest Results

You may view the results of any of your backtests by clicking on the Results link at the top navigation bar.

Your backtest results would include the performance of your strategy against its benchmark, the historical positons that your strategy has held, the current positions in the portfolio, and the risk return profile for each of your stocks.

8. Live Trading your Strategy

If you are a paid subscriber, you will have the option of going live with your selected backtest results. When you go live with your backtest, PyInvesting will run your backtest daily using live prices. An email will be sent to you daily to update you on your current positions and the live orders generated by your strategy which you can trade on your personal account.

To go live with your strategy, simply select the backtest results of the strategy you are interested in and click "Go live with this strategy" near the top of the Results page. Your strategy will then appear in the Live page. You may view the Live page by clicking on the "Live" button at the top navigation bar.

9. Breakout Trading

Whether you do day trading or swing trading, using a solid breakout trading system can significantly improve the risk reward ratio of your trades and increase your trading profits in the long run. A breakout in stocks occurs when the price of a stock breaks above its resistance level or breaks below its support level. After a breakout happens, prices tend to continue moving undeterred with strong momentum.

View our full tutorial