Many screeners include a backtest feature, allowing investors and traders to evaluate if the same strategy would have been effective in the past. Backtest data helps in understanding a stock's historical performance and returns.
To conduct a backtest, follow these steps:
Begin by creating a Copy of the screener by clicking on it.
Next, select the Backtest icon as shown below.
- You can choose the Start and End date and the Stock segment like NIFTY50/NIFTY500.
- By clicking on the Advance Sorting option you can configure the preferences and also number stocks in Max stocks.
By Selecting Run Backtest the result of the backtest will be displayed.
- An overview of the returns over the past months is displayed.
Period analysis - returns over the backtest period.
A summary of previous backtests is also provided.
Important: Please note that the current universe constituents of an index are applied throughout the backtest. It does not adjust for past changes in previous periods. If you wish to select stocks based on high market cap instead, then use the "All Stock" universe with a market cap filter.