Bloomberg has long offered back-testing of trading strategies based on technical indicators (both mainstream and customized), complete with optimization to find the best settings. Bloomberg now extends this into two key areas:

  • Back-test technical trading strategies in relative terms, e.g. pairs trading or relative to an index or portfolio (benchmark & customized). Buy-side users can now quantify optimum trading strategies relative to actual portfolios, while sell-side users can offer recommendations which are carefully tailored to their clients’ investment parameters.
  • Back-test trading strategies using Bloomberg’s vast library of global economic and corporate data. The value of macroeconomic research can finally be compared directly with technical analysis. Back-test equity brokers’ analyst recommendations, together with the impact of corporate activity (e.g. stock-splits or dividends), all on both an individual and relative basis.

This presentation demonstrates how Bloomberg technical analysis meets the practical needs of modern trading and investment, with direct comparison with macroeconomic research, analyst recommendations and corporate activity.