Back test

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Back Test

To use past data to predict future events. Researchers use back testing to find relationships between apparently unrelated events and determine if one causes the other. One may conduct back testing to inform one's investment decisions or strategy, though the practice is not always accurate because a great number of inputs cause economic events.

Back test.

A back test simulates the investment return that an investment strategy would have produced over a specific period.

For example, someone who wanted to evaluate a strategy of buying after stock splits might test the effect of having purchased 500 additional shares in the large-cap stocks in a hypothetical portfolio each time one of the stocks split during the period from 1957 to the present.

Back testing is sometimes used to support a current investment strategy by demonstrating that it would have enjoyed strong past performance. Critics point out that the testing period that's chosen has a significant impact on the results and that past performance doesn't guarantee future returns.

References in periodicals archive ?
BPO employees performed poorly compared to their controls in auditory verbal learning test, stroop test and visual N back tests.
The 1 back and the 2 back versions of the N back test [10] were used.
In the 1 back test the subject responds whenever a consonant was repeated consecutively.
Visual Working Memory was tested using N back test with 1 back and 2 back versions.
Full Flex component object recognition and property testing allows these teams to reliably record and play back tests that validate the Flex application is running as expected.
Ronin Capital LLC is using S-PLUS 7, a de facto industry standard software platform for statistical data analysis and predictive analytics, to perform back tests of equity trading strategies on large stock data sets.
In the past, we have had to break our data sets into pieces and rely on multiple batch files to perform back tests of equity trading strategies on a large stock universe.
In the past, we had to break our data sets into pieces and rely on multiple batch files to perform back tests of equity trading strategies on a large stock universe," said Jeff Wang, quantitative research analyst, at Ronin Capital.
Analysts are now able to build large predictive models, generate more accurate short-term volatility strategies, and back test large portfolios more efficiently.
Next year's international summer, which begins only two weeks after the winter commitments end, is a gruelling affair,including three sets of back- to back Tests.
Use WinSSD for BERT (Bit Error Rate Testing), throughput monitoring, loop back tests, and transmit pattern messages.
The majority of communications failures of the satellite loop back tests are attributed to atmospheric conditions.