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 Analyst Ratings provider will be decommissioned in June 2017 and superseded by MarketBeat Analyst Ratings provider (when ready).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.
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Eugene

#8
Stumbled onto this thread and decided to post an update. The Yahoo! Analyst Ratings and MarketBeat Analyst Ratings providers were broken by internal changes at the websites. Fixed in v2017.09 of MS123 Fundamental/News providers. See post #6 above for installation link.
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