Asset Allocation Backtesting Softwares

Asset allocation is a basic strategy an investor uses to distribute his investments among various classes of investment vehicles in order to hedge against the risk. But somehow for an individual investor, the approaches used to forecast forward-looking inputs for return or risk in the traditional mean-variance optimization are complicated and time-costly. To trade with the help of some asset allocation software is usually preferred.

I am currently using Windham Portfolio Advisor, which is comprehensive and the most user-friendly software I have used so far.

Pertrac Analytical Platform is one of the biggest competitors against Windham Portfolio Advisor. It has more pre-installed asset classes and data than Windham has, such as Nasdaq and all types of government bonds. But the default Pertrac Analytical Platform version comes without a Black-Litterman model, which requires to pay additional fee if needed.

For an individual investor who is looking for a good bargain on a tight budget, MvoPlus is a good choice. However, it does not have a Black-Litterman model or Monte Carlo methods, and requires users himself to import all the data. It can still be tempting at its price level, which is relevantly much cheaper than Windham or Pertrac.

But nothing can compete with Morningstar EnCorrr, the most fully-scaled asset allocation backtesting software in the industry. The whole package consists of Data Center, EnCorr Allocator, EnCorr Analyzer and other five portfolio tools. Considering how sophisticated it is, Morningstar highly encourages its users to take online tutoring courses.

Of course, there are a lot of fish in the sea. Besides all above, Zephyr Allocation Advisor, DynaPorte Portfolio Solution and other softwares can be wise choices for investors as well.