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Backtest Trading Strategy Online in India | AlgoTest India

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AlgoTest India

We recently introduced a new feature on algotest.in called Portfolio, which allows you to backtest multiple strategies together. In this blog, we’ll backtest a sample portfolio of multiple strategies, and also show you how to avoid common pitfalls when using this feature.


Once you’ve discovered some profitable strategies (click here to see example), the next step is to combine them in a portfolio. 

To build a portfolio, click on Portfolio, then “Create new portfolio”. You can select the strategies you want to include in your portfolio, and finally give your portfolio a name. On clicking “Create”, your portfolio will now be ready.

Finally, you can click on the portfolio and then run “Start Backtest”. This will run a combined backtest for the entire portfolio. After this step, you will get an aggregate result, along with a correlation matrix.


Why do we do this?

The purpose of running this combined backtest in a portfolio is to harness the benefit of diversification. Running multiple uncorrelated yet profitable strategies, in theory, should lead to a smoother equity curve through reduced variance in returns. Time for an Albert Einstein quote 🙂

In theory, theory and practice are the same. In practice, they are not. 

Albert Einstein


Visit Us:- https://algotest.in/blog/backtest-multiple-strategies-together-using-the-portfolio-feature/

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