This step is available in all static and dynamic strategies including stocks, MFs, and ETFs.
In this article, we are going to talk about the final step of strategy creation. Here we can see the detailed backtest report and/or paper trade of our strategy. So, let’s look at it in more detail.
Once you select the benchmark and enable transaction cost as discussed in the previous article and click on the next step, you will first see the virtual orders generated for your paper trade based on the entry rules and weightage rules you have provided in earlier steps.
It will look something like this.
If you are creating an MF or ETF strategy, you will see a similar order for the units of MF or ETF. But apart from that there are two interesting sections highlighted in red in the image above.
The first is the Run Backtest button. Once you click on that, you will be able to see a detailed backtest report including strategy and benchmark performance comparison, all important metrics, and much more. We have talked about this in detail here.
The second is the View Analytics button. Once you click on that, you will be able to see detailed portfolio analytics of your strategy.
It is divided into four sections.
Once you are done with the strategy analysis, you can click on the close button.
Now only thing left is to give our strategy a name and save it. Once you click on the next step button (highlighted in red in the below image), you will be asked to provide the name of the strategy and description.
After naming your strategy, you will click on the Execute order button. And that is it! You have created your first strategy.
You can now track the performance of this strategy as shown in the image below (highlighted in blue).
Note that this is a stock strategy created using a factor model. So there is a Stock tag on the right top of the box. If you have created an ETF strategy then you will see the ETF tag as highlighted in red (middle in the second row).
And with this, we conclude our strategy parameters article series. We hope that now you have a thorough idea of each step in the strategy creation. Now, it is your turn to create some solid rule-based data-driven investment strategies.
If you still have any doubts, don’t hesitate to reach out to us in the sharpely community. We will be more than happy to resolve your doubts.