If we had a nickel for every time we've heard the phrase “I’ve never seen a bad back-test” over our 35 years of experience in the industry, we wouldn't need an investment strategy--we'd be set for life!

A back-test is an analysis of how a trading or investment system would have worked had it been in existence over a selected period of time. Back-tests use rules of how and when an investment would have been made. The rules are comprised of factors that the developer believes help predict the price movement of stocks or other asset classes. There are thousands of potential factors including everything from fundamental data such as price to earnings ratios, dividend yields and profit margins to technical data such as moving averages, volume, relative strength and linear regressions.

Some strategists believe in the ability of astrological connections such as what date and time certain planets will be in the sky or the distance of the moon! Regardless of the inputs, developers are looking for the system that has performed the best over time.  Back-tests, the most common tool used by most developers, make the critical assumption that what’s worked in the past, will work in the future. It’s basically like driving while constantly looking in the rear-view mirror. What’s important is being able to consistently predict what will happen going forward.This is a goal that very few investment professionals can achieve, much less the tens of thousands of amateur investor wannabes. PiNG,  was established by market professionals who have decades of direct and diverse investment experience, who have built and managed successful public and private funds. This experience and our expertise have taught us many lessons and have shaped our philosophy.