Backtesting is
the process of applying a trading strategy or analytical method to
historical data to see how well the strategy or method would have
predicted actual results.
It allows an investor to mimic an investment strategy over a specific
period of time and then analyze the results for profitability and risk.
Backtesting therefore offers investors a way to
evaluate and optimize their investment strategies and analytical models
before implementing them and risking any actual capital.
The following reports show backtested examples of how to invest
$100,000 using the VA strategy on various Exchange Traded
Funds (ETFs), Indexes and Stocks.