ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Free Fundamental Backtesting and Stock Screening Software

Updated on February 23, 2013

Portfolio123 Backtesting of Value Strategy

Free Stock Screening and Backtesting Software

How can you determine if an investing strategy is good or not? One method is to use stock market backtesting software. Let me quickly explain why you might need to use one and where the best one is for free.

Two Types of Analysis

You just finished reading a book on how to make money in stocks. The strategy could be about dividends or income investing, value investing, or high-growth trading. While the theory seems to make sense, you are unsure if the strategy works in the real world. One way to test the strategy - or even develop your own ideas - is to use backtesting software.

The software may be based on:

  1. Technical analysis
  2. Fundamental analysis

Technical analysis is the use of indicators such as RSI, MACD, ADX, and Stochastics. These use complex formulas based on price and volume. Fundamental analysis is what an accountant does. This involves using ratios such as dividend yield, price-to-earnings, net asset value, and revenue per share. You will more commonly find technical backtesting software since it only requires price and volume data which is cheap and easy to come by. Fundamental analysis requires a lot of historical data that may not be easy to come by. Thankfully, there is a way for you to get both - for free!

Portfolio123 : Free Technical and Fundamental Backtesting

I have scoured the Internet looking for comparable alternatives but I find none. One name kept popping up over and over again - Zacks Research Wizard. So I used the two week free trial to find out what it was all about. At first it seemed like a pot of gold - it was so easy to make a scan that would earn 40%+ per year. But then I began to notice some problems. There was survivorship bias meaning that when a company was de-listed, it disappeared off the Zacks database like it never was. This artificially inflates gain and is not real world trading. Maybe they fixed this issue since last year - I don't know. I also found the interface too simplistic after only a couple of days. The robustness checks and statistical testing was by my standards. As well, the historical data was limited. When I asked about price it was in the hundreds per month...and even more if I wanted a set of watered down 'advanced tools'. I was not pleased with the value at all.

Now compare this to Portfolio123. First up, you can get unlimited access to the top tier for a free trail period. Use the link here to get 45 free days of use on any membership level (you get an extra long trial period through the Hubpages link. Alternatively you can use the code "HKURTIS"). They also have a 100% free membership level as well (*note added in 2013 - the total free version is no longer available but they do have a $49 per mont lite version. Sorry). The membership is about 1/10th the cost of institutional grade software and much less than the cost of Zacks. But how do the features compare?

Review of Features in Portfolio 123 Online Software

Here is only a surface review of what you will find:

  1. Strategy Building - Use predefined scans that range from famous investing styles like Warren Buffett, Benjamin Graham, Peter Lynch, and CAN SLIM. You can build your own scanusing over 550 different fundamental and technical analysis filters. Some of the data I cannot find anywhere else.
  2. Backtesting - Test the strategy out over the last 10+ years.
  3. Robustness Checking - Did you cherry-pick the perfect time to invest? The robustness check will put the strategy to test with over 500 random entry points in the last decade to see how it performs under all conditions. Impressive!
  4. Simulations - Run the strategy with different buy and sell rules - both technical and fundamental. You can also use a variety of stop-losses or hedging tactics. Put in realistic liquidity requirements, trading fees, and slippage. This will also generate buy and sell signals for your portfolio going forward.
  5. Model Portfolios - Build and track your portfolios online.
  6. Ranking - You can build or use an existing ranking model which grades stocks on whatever criteria you select. This is a superb feature that I could write an entire article on.

There are market timing models, a full suite of tools for ETFs and more. In my opinion, it is institutional grade software at a fraction of the cost - or even free depending on your selected membership. Of course, you do have limited functionality with the free membership but you still use the stock screening and backtesting on the trailing one year of data. After searching for investing software, I finally found Portfolio123 - and I have never been more satisfied. Give it a free try to you be the judge. It takes a while to learn the in-depth features but it is worth the time spent as it is a free online fundamental and technical backtesting software all rolled into one neat package.


    0 of 8192 characters used
    Post Comment

    • Tom Schumacher profile image

      Tom Schumacher 

      5 years ago from Huntington Beach, CA

      Interesting hub. I look forward to trying Portfolio 123 to measure its effectiveness of technical and fundamental backtesting. Thanks for sharing. Voted up.

    • monicamelendez profile image


      6 years ago from Salt Lake City

      I think one of my friends will be super interested in this. He does a lot of his own modeling and I bet this will help him a lot. I'll pass it on


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)