How to backtest a portfolio?

I published a video on how to backtest a portfolio. You can find more details about it below.

First, I wanted to share some updates about the book: I finished writing it!

I will release it soon. I am aiming for April. But first, I have to finish some of the extra content.

Now, I am working on videos of some practical aspects of investing. These videos will help you to quickly get acquainted with things that are needed to start investing.

The videos I am planning are:

  • How to select ETFs in practice – The book describes how to choose ETFs in practice. In this video, I do a live walkthrough of the same process. You will see me using justETF and a spreadsheet to select the ETFs for the Simple Portfolio.
  • Walkthrough of useful online tools – I describe how to use the tools I regularly use as an investor. These are the tools that help me find information about ETFs and financial markets.
  • Guide to brokers – I explain how a broker works, how to use, and how to choose one.
  • Guide to taxes – I explain the core principles of taxes that investors should know.

Backtesting is a useful tool to learn more about market history. It shows how a portfolio performed in the past. You can see how it performed in good and bad times. I also think it helps make investing a bit more tangible for beginners.

The video I published explains how to use Backtest and Portfolio Visualizer for those purposes. It is a sample of the longer video of the book where I cover all tools I use. You can see it on Youtube: https://youtu.be/u04Gui9zzxw