As some of you may know, I've been writing some software to backtest on fundamental data among other things. A few people on and off the forum have expressed interest in me making it publicly available. I would be very greatful if everyone could voice their opinion to help me decide whether it is worth it to proceed with the effort.
I have previously wrote with some examples of what my software does here (post 200 and 201):
and here (post 3):
There's a simple demonstration of it on youtube:
It is primarily based on fundamental data and investing, there isn't much for a price/momentum based investor other than the basics.
The plan is to create a website that allows you to do things such as:
- See detailed financial information about all ASX stocks.
- Backtest based on this data. For instance, buy when PE<7 AND PB < 1; Sell when PE>15. This will be very flexible and people will be able to build their own criteria. In addition to specifying backtest criteria for buy and sell, it will be possible to also control many portfolio management strategies, such as stop losses, sell losers, position sizing, cash interest, averaging up/down, selling when doubles, etc.
As an example, I can run a test for the last 10 years, with the following configurable parameters:
Buy if EV/EBIT is less than 5, Price/Sales less than 0.3 and Price/Book less than 1.0.
Sell when EV/EBIT is greater than 15.
Sell if in red after 3 years.
Portfolio size $50,000. Position size: 4%.
Buy more if price drops 30%, but only if the original Buy criteria still applies.
Sell a third if price doubles.
4% interest rate on cash balances.
The software than produces a list of all trades that would have been triggered over the last 10 years, and calculates total return, hit rate and other statistics.
- Advanced filters/search. The same way you can build complex criteria for backtests, you'll be able to create criteria to search current stocks for ones that make the cut.
- Advanced charting. It can chart any of the company's financial data. It will be possible to aggregate into one chart the numbers from one/all/or selected companies. For example, it will be possibly to chart revenue and profit growth of all companies in one industry in comparison to their market cap.
While I have all this fully working on my computer, it will take some effort to build a website that hooks into the existing engine and presents things nicely. So I would really appreciate if people could give me some feedback on this, either as a reply to this thread or a private message.
1. How interested would you be in this kind of information/service?
b. I would look at it out of curiosity.
c. I think this could help my investing/trading.
d. This is exactly what I've been looking for.
e. I think it is useful, but only for large funds.
2. What do you think is a fair price to pay for this service?
3. How much would you pay for this service?
4. The fundamental data I have is entered by me, not sourced from Reuters or other agencies. There will be a disclaimer there that no responsibility will be taken if any of it is incorrect. Will this impact your decision on whether to subscribe or not.
a. Not at all.
c. I will not be buying unless the data comes from a verified data source.
5. If the service was not a website, but an application that would need to be downloaded and installed only on PC, would that influence your decision to buy?
Any other comments or suggestions?
Thank you very much for taking the time to read and hopefully respond.
To encourage participation, I will randomly select 10 respondents and give away a month of free service once it is ready.
P.S. Joe, I hope it is appropriate to post something like this, please remove it if not.