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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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Neat features on the iFlip platform include the ability to backtest "every stock, with every algorithm, all the way back to 2004," Tate said.
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Thus, it is an appropriate objective to measure and backtest the systemic risk during the 2001 dot-com bubble and the 2007-2009 financial crisis.
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The DRM provided consistent, positive price improvement of 2-6 bps over the backtest period.
Additionally, Strategy Trader provides clients with 500,000 bars of historical data and the ability to backtest with both bid and ask prices.
A backtest is a prediction of future credit risk using historical data for the explanatory variables and the actual DWPD in the base year for the prediction.