Backtested 20 years of different portfolios

[AriaS]

Hi everyone,
I backtested 20 years of a large amount of portfolios by using this website:
https://www.portfoliovisualizer.com/backtest-portfolio
Result: holding 2-6 largest cap stocks (with yearly revision) outperformed S&P500 by far.

 

[xatta]

Thanks for posting the link. It looks interesting, except you can not change the portfolio at all during the backtest period. But after all it is a "portfolio" visualizer and not a "strategy" visualizer.

 

[1nvest]

Thanks for posting the link. It looks interesting, except you can not change the portfolio at all during the backtest period. But after all it is a "portfolio" visualizer and not a "strategy" visualizer.

They do provide a more dynamic allocation, under the term "Tactical Asset Allocation" you can then enter a range of Funds or ETFs and depending on the criteria, will choose the most appropriate ETF. for example the momentum rotation model, will rotate in and out of the ETFs based on their momentum ranking, so it becomes both dynamic and is a strategy in its own right

This is just their example, you can do much better

 

[TWI]

Thanks for posting the link, will have a look around. I have used https://allocatesmartly.com/ for a number of years which offers similar TAA backtests and real time allocations. I pay $300/yr as I do actually invest capital in these systems and it saves me some significant work on diversification and historcials.
After living these portfolios for 8 years my advice is to consider drawdowns and volatility as the key metrics because you have to live with the returns daily, weekly, monthly and 25% draws are very psychologically painful . I consider returns vs. drawdown together with sharpe and sortino. I prefer to leverage up a smooth return than unleverage a volatile one.