Backtest Analyst Ratings
Author: Supersol
Creation Date: 8/23/2013 3:48 PM
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Supersol

#1
Dear All,

I wanted to backtest based on the data of the analyst ratings but do not really see how this can be done?

As I can see from the charts, the Analyst Rating produces numbers in the range from -1 to 1, what does it mean and how can I backtest it?

Kind regards
Supersol
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Eugene

#2
EDITED by Eugene 05/23/2017:

Hi Mathias,

The provider is documented here with a code example:

* Yahoo Analyst Ratings provider
* MarketBeat Analyst Ratings provider

The fundamental item is called "analyst rating" (for Yahoo) or "[mb] analyst rating" (for MarketBeat), upgrades are 1, and downgrades are -1. You can build a system using Rules (General Fundamentals) or express your idea in code as exemplified in the QuickRef > FundamentalDataSeries.

You shouldn't experience any difficulties along this way, but feel free to post follow-up questions.
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Supersol

#3
Hy Eugene,

I am not sure if I understand the concept right. I tried to test the ratings in the following strategy (See Capture1)

In my opinion the strategy could buy 3 times as there are two additional positive ratings. (See Capture3)


How can I tell Wealth Lab to buy with every upgrade and to sell with every downgrade?

Kind regards
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Eugene

#4
EDITED by Eugene 05/23/2017:

Normally, you select "Multiple open Positions allowed" to buy N times:



However, as the value of a fundamental item stays equal to 1 (or -1), that should not help anyway. So here's an example of a code-based strategy that buys on every upgrade and sells every downgrade:

CODE:
Please log in to see this code.
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Eugene

#5
The Yahoo! Analyst Ratings provider will be decommissioned in June 2017 and superseded by MarketBeat Analyst Ratings provider (when ready).
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Eugene

#6
The MarketBeat analyst ratings provider has been released.

* Online user guide in the Wiki
* Direct installation link
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Eugene

#7
I've just discovered that Yahoo's new web page grabs up to almost 20 years worth of anlayst ratings data for a stock internally but displays only the last five or so items for whatever reason. That'd be a mistake to lose such as an extensive source of fundamental items.

The Yahoo! Analyst Ratings provider will be rebuilt and available in v2017.07 of the library.