A simulation in Fincanva is a historical backtest. It shows how your strategy—built with screeners, models, and portfolio rules—would have performed in real markets, using real data, without the benefit of hindsight.
It’s like sending your portfolio back in time to see how it would’ve handled bull runs, crashes, and everything in between.
What Happens in a Simulation:
Your portfolio logic (allocations, rebalancing, risk rules) is applied step-by-step over historical market data.
It uses walk-forward logic, meaning each decision is made only with the data available at that time—no look-ahead bias.
It includes delisted assets to avoid survivorship bias, and uses objective screeners to minimize selection bias.
You choose the start year (e.g. 2000, but you can go back in early 1800), and Fincanva runs the simulation to the present.
What Makes It Realistic:
Optional inclusion of taxes, fees, slippage, and reinvestment.
High-quality, timestamped data with realistic execution assumptions.
What You Get from It:
Visuals and metrics for returns, drawdowns, volatility, asset allocation, and more.
Sensitivity analysis to see how your strategy performs under different starting conditions.
Insights that help you refine models, rebalance logic, or risk rules based on real-world outcomes.
A simulation won’t predict the future—but it gives you evidence, not guesswork.
Think of your portfolio as the strategy, and the simulation as the time machine. It helps you validate ideas, reduce risk, and gain confidence—before you invest a single dollar.
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