Incorporating backtesting library

[Akshat111111]

Incorporating backtesting library

[mdutta1234]

Hello, I checked out the performance of the other sectors and found the cagr was lesser in the case of the trading algorithm w.r.t the benchmark, although when I looked at the graph against the benchmark I found that CAGR of trading algo should be higher.So I wanted to crosscheck the CAGR calculation function .Please check the function below which I modified:

def calculate_cagr_b(portfolio):

final_portfolio = portfolio['total'].iloc[-1]
initial_portfolio = portfolio['total'].iloc[0]
delta = len(portfolio.index)
print('Number of trading days = ', delta)
YEAR_DAYS = 252*4
returns = (final_portfolio/initial_portfolio) ** (YEAR_DAYS/delta) - 1
return returns

I changed Year_days to 252*4 as I was checking for last 4 years , is this correct?

[mdutta1234]

Ok thanks a lot.

[mdutta1234]

How many years of historical data would you like me to use for the backtest?

[mdutta1234]

When I kept the start date as 2018-12-02 and end date as 2022-12-01(yyyy-mm-dd format), the CAGR is very less compared to NIFTY Bank and the Portfolio Performance is lower than Benchmark for most part of the Portfolio Performance vs Benchmark graph.

[Akshat111111]

Thanks for considering this repository for contribution,The duration should be last 3-4 years.

[Akshat111111]

You can try considering different sectors,which can give better results as compared to bank nifty

[mdutta1234]

Ok thank you, I will check the performance for other sectors

[Akshat111111]

Yeah, you can proceed further.After implementing it raise a PR so that I can review it.Talking about the performance, we will raise an another issue for its optimization.

[Akshat111111]

I am assigning this issue to you,so that you can add the PR