Freshmen Overlap Backtest

Freshman stocks are those that are new on a screen, i.e. weren't on it last month (or quarter, etc). At least for RS screens, these seem to do well, especially if the overlap concept is applied to them. It's not uncommon for this screen to not find any stocks for a given month, so the regular overlap screen is used as a fallback in that case.

Starting in
Holding Period: months

General instructions

Run the tester over the specified range of years. Available data runs from 2003 through 2023 for most screens. You may start at any month of the year, but other than January can only run through 2022/2023.

Stocks are picked from the screens every holding period (between 1 and 120 months) and held for that period.

Instead of selecting from the available screens, you may choose to enter codes from any of the backtesters to create hybrid tests. Simply copy the link listed at the top of a run and paste into the form. Also see the backtester code guide.

You may give your backtest a name for convenience. If you use this backtest code in other testers, its name will be shown instead of a full description.

$ initial investment
Fixed allocation
Add $ every months
Rebalance: never always
every months
$ commission, % spread
Short-term tax: %
Long-term tax: %
Pay taxes every:
Trade day(s) after rankings

Trading simulation

Start with an initial investment. You may also add more money periodically. You can also subtract from the portfolio by adding a negative amount.

Instead of adding or subtracting a fixed amount, you can elect to keep the portfolio at a fixed allocation. This is useful for testing costs without considering the effects of compounded growth, to see what your money might do this year.

Normally, the stocks held in a screen are rebalanced on every trade. You can also specify to never rebalance, which may allow one stock to dominate a screen as it grows, or rebalance at a fixed interval (which must be a multiple of the holding period).

You can pay a fixed commission (which is applied to every buy and sell) as well as a percentage spread (half applied on buy, half on sell).

Capital-gains taxes can be applied, both short-term and long-term. Taxes may be taken out on every trade, quarterly, or annually.

Screen rankings come out on Friday, and backtests are typically done with the closing prices on the next Monday, one day after the rankings. This lag between ranking and trading can be varied from zero days (trade on Friday) and upward.

Freshmen ranks: to
Overlap ranks: to
Limit to stocks

Freshmen Overlap Backtest instructions

Select the screens to overlap. For a stock to be picked, it must appear on all selected screens for the given month.

Select the ranks to find the "freshmen" in. A stock is considered a freshman if it was in the selected ranks this period, but was not there in the last period (though it may have been elsewhere in the list). If multiple screens are selected, a stock must be in the specified positions of every list this period, but not in those positions of any list in the previous period.

Often, no freshmen candidates will be found for a given period. In that case, stocks will be chose from the regular overlap instead (see the overlap tester). Select ranks to use for the regular overlap.

You may limit the selection to a specified number of stocks. If you do, up to the limit may be chosen, though fewer are possible. Otherwise, all applicable stocks will be selected.