What are the Best Factors for Factor Investing?
There are several models such as a widely used Fama-French three-factor model utilizing three factors, size of firm, book-to-market-values, and excess return on the market. But the correct answer to the question „What are the Best Factors for Factor Investing“ is that the “best” factors …
Using Alpha, Beta, and Sharpe Ratio for Configuration of Investment Strategies
The article, part of our “Configuration of Investment Strategies” series, introduces the concepts of stock investment indicators and ratios. Alpha indicator, Beta indicator, and Sharpe ratio are applied within our StockPicker configurator. We’ve introduced a simple table that quickly summarizes the performance and stability of …
Equities of strategy and benchmarks
The article from the series “Configuration of Investment Strategies” presents the Equities of Strategy and Benchmarks indicator that we use in the StockPicker configurator. The graph shows us the development of the portfolio value over time according to the previously entered input data. In …
Configuration of investment strategies
There are 3 things crucial for building stock investment strategies. …
Comparison of the Results from Pattern Lab and Manual Backtest
How does the Pattern Lab’s backtester work? Why should I always validate my strategies by doing a manual backtest? You will find the answers to these questions in this article. For the comparison, we used the first version of Pattern Lab, released on 2021/12/01. …