Benchmark

Also seen as: Bench, vs bmk

Defaults in Fincanva

• A benchmark is computed as its own simulation with the same status states as any backtest — Computing while it runs, Ready when it finishes, Failed if it cannot complete.
• Changing the benchmark starts a new benchmark simulation; the comparison waits until that benchmark reaches Ready.
• The benchmark uses the same starting capital and date range as the strategy it is measured against, so any difference reflects the holdings rather than a different setup.
• Which portfolios you may choose from is set by your plan: the market benchmarks are open to every plan, and your own live portfolios become benchmarks too from Advanced upwards. A plan that does not include them still picks any market benchmark, and a strategy that was already pointed at one of your own portfolios keeps that benchmark and keeps running — what changes is that you cannot point one at a portfolio of yours again, whether by picking it or by duplicating a strategy that already uses it. Picking a benchmark, saving your simulation settings, duplicating a strategy and detaching a component into a strategy of its own are each checked against your plan. See what each plan includes.

Worked example

You compare a strategy against SPY, an ETP that tracks the S&P 500. Both start from the same capital on the same date, and Fincanva runs SPY as its own backtest, drawing the two equity curves together. Where your strategy's line sits above SPY it is ahead; where it dips below, it is behind. If your strategy ends higher but with deeper falls along the way, the side-by-side makes plain that the extra return came with more risk. What each comparison number means is covered in the metrics guide.

A benchmark comparison describes what two simulations would have done on historical data, not what either will do, and beating a benchmark is not a reason to expect the same ahead. Fincanva provides no financial advice — see Is this financial advice?.