All language subtitles for 7. Backtesting function (1)

However, and welcoming this new video in this video, we're going to create a backtesting function

to apply it in the next.

Hi, everyone, and welcome in this new video.

In this video, rolling to create a backtesting function to a plate in the next chapter, we are not

going to cut this function together.

Why?

Simply because it is exactly all the code that we have created in this chapter.

So here.

We have compute the drawdown, we have concatenate the salary and the S&P 500, and then we just have

to plot the cumulative return of the S&P 500 and the regional strategy and to plot the drawdown here,

then we need to compute the indicator of the volcano beta alpha exit seven and we can display using

the print function.

So now if I take the Google stock price return as the south as you were, don't we just have to apply

the Baptist function and then to put the region of growth strategy.

And then we can see that we had the same sortino ratio, Beta Alpha XA2.

I just want to warn you about a little update here.

We need to put daily ritual into.

Or backtesting function because we multiply it always by the 252 days on per year.

So for example, if you put monthly data, you need to put 12 here because there are 12 month into one

year.

So I think that it's better if in the next video, I will show you how to change it very easily.