Skip to content
Financial-Software-Solutions-for-Backtesting-Slippage-–-Wakett-Tips
Wakett2 June 20233 min read

The Best Financial Software Solutions for Running Backtests & Reducing Slippage Costs

The Best Financial Software Solutions for Running Backtests & Reducing Slippage Costs
3:56

Investment managers know that choosing the right software for their processes is key to increasing efficiency and reducing risk, while also saving time and money. But what are the best financial software solutions when it comes to running backtests and reducing slippage costs?

 

Identifying the Processes

To start off with, let’s define what we are talking about and understand the processes we are referring to.

  • Backtesting is an action undertaken by investment managers to see how their current investment strategy or model would have worked in past market scenarios. This takes into consideration historic market forces and how they affected the market prices and liquidity of the assets in your portfolio at a given time, affording you a clearer idea of what would happen if a similar scenario were to crop up.  This type of process is often undertaken using dedicated software, but the action in itself is prone to issues, including incomplete or insufficient data about book prices, trade sizes, execution and calculation latencies, and risk restrictions.
  • Slippage, meanwhile, refers to the difference in price between what you were willing to pay for an asset and how much you actually paid for it. This can be both positive and negative, but what’s always certain is that it will make a difference to your bottom line – sometimes by tens of thousands per year. While slippage cannot be completely removed from the equation, there is software that can calculate and estimate slippage in advance, giving your team precious information to minimise its effect on your portfolio and have full control of your execution and risks.

 

The Ultimate Financial Software Solutions For Backtesting & Slippage

We have two articles dedicated to the best Backtesting vs Realtime Trading Software and the Best Software To Reduce Your Slippage Trading but, in a nutshell, what you need to keep in mind here is that both processes require complex code and algorithms to be done properly.

Sadly, off-the-shelf software, while it does the job in certain ways, often leaves very little leeway for companies to truly home in on their individual needs, maximise efficiency, and effectively reduce risk.

That’s why, whether we are talking about slippage in trading or portfolio backtesting, the best financial software solutions need to be tailored to your needs.

 

The Best Financial Software Solutions Place the Power Back in Your Hands

Software that’s been designed with you in mind does more. Our software, for example, 

  • Gives you multiple data time-frames that go beyond daily data;
  • Synchronises historic and real-time data and prices;
  • Manages any time zones to avoid discrepancies;
  • Removes latency in data processing;
  • Collects unlimited book prices; and
  • Creates tailored reports and actions that take into consideration the different roles involved.

But this didn’t just happen by chance.

 

Discover How Wakett’s Software Could Take Your Game to the Next Level

We are a team of financial and software experts that has put its decades’ worth of collective experience into software solutions that keep your needs at the heart of their code. 

We have four flagship pieces of software that can be mixed and matched to help you create a streamlined process that tackles your backtesting and slippage needs. These are namely: 

These tools can process high volumes of data in streaming, as well as static data, according to your needs, allowing you to be always informed, in control, and to act quickly.

So, why not get in touch with us to discover how we can help you with all your financial software needs?

RELATED ARTICLES