Back testing results

The backtesting is a simulation of how our trading platform would have performed if it were used in the past. We do this by running the trading algorithm ex-post for the period 1997 until 2008. As in the real-time version, the trading platform decided what positions to open and close on each day of the simulation period, given all the data it would have had to rely on the particular day.

In the following table and chart we compare our strategies to the S&P 500 Index which is a common indication of the market performance, and to the Russel 3000 Index which includes all the companies covered by our platform. Each strategy was tested individually. We started each simulation with an initial investment of $150k and allowed an additional borrowing of $50k (which was paid back with interest at the end of the simulation - interest expenses were not included in the calculation).

Backtesting Performance Summary For Period of 2009-1998

* The yields include trading commissions.

All three strategies outperformed the market significantly during the simulation period, which includes the financial crisis that started in July 2007.