I have been using the free version of Finviz on a daily basis for several years.
Just recently I decided to subscribe to Finviz Elite to take advantage of the live market data, more powerful screener and backtesting features.
So far I have been more than happy with that decision. At $25 per month, I think the service offers amazing value for money and I have already seen it have a real improvement to my trading and analysis.
I don’t say that because I’m using an affiliate link. In a sea of over-priced trading products, Finviz is a rare gem.
In the rest of this article, I will take a look at what comes with Finviz Elite and then test a trading system using the backtesting feature.
Finviz has been one of my favourite trading tools for some time. Finviz Elite offers the same powerful functionality with added premium features. Such as:
• Real-time and pre-market data
• Advanced charts and screener
• Correlations and backtesting
• Alerts, notifications, visualisations and advanced customisations
Real-time And Pre-Market Stock Data
The main reason I decided to subscribe to Finviz Elite in the first place was for the real-time and pre-market data. This is an extremely powerful feature for me because it lets me screen thousands of stocks on a multitude of factors in real-time and during the pre-market session.
It allows me to save screens as presets, load them up at any time of the day and quickly eyeball useful trade setups. It saves time and serves as a great way to find trade ideas.
You can screen and rank on a huge number of filters and also export the data into Excel which opens up all sorts of possibilities as well.
The charts are not as customisable as some other platforms but for me, that is not necessarily a bad thing as I don’t want to succumb to ‘technical analysis paralysis’.
Using The Finviz Backtester
Although I mostly signed up for the live data and the screener, the Finviz backtesting feature adds a lot of additional value.
It lacks the power and functionality of a program like Amibroker (where you can program your own formulas) but Finviz is extremely useful for quickly evaluating trade ideas.
Using the backtester you can test around 100 technical indicators on survivorship-bias free stock data going back to 1996.
You can’t test fundamental rules but you can combine indicators, add in transaction costs, stop losses, time-based exits and then compare your results to the benchmark.
As an example, I created the following strategy based on the Money Flow Index indicator. The whole process took just a couple of minutes.
Money Flow Index Strategy
To use the Finviz backtester you simply click backtests and then enter the strategy settings and rules you want to test.
For this example I’ve set the stock universe to the Russell 3000 with a minimum daily volume of one million shares and I’ve set transaction costs to 0.05% per trade.
The start date is set at 06/03/1996 and the end date to 01/01/2015. Below that we have the strategy rules which I’ve filled in as follows:
So this system will scan the Russell 3000 and it will buy whenever the 5-day MFI crosses below 10. This suggests the stock is oversold.
It then sells when the MFI crosses above 90 OR after 10 trading days. You can also add in stop losses here but for this example no stops are used.
By the way, the money flow index is an oscillator that uses both price and volume to measure buying and selling pressure, also known as volume-weighted RSI, it’s good way to find stocks that may be near exhaustion. You can read more about it here.
Running the test took less than a minute.
As you can see from the charts, Finviz shows you the results in a number of different formats and let’s you compare the performance to the buy and hold benchmark return on both SPY and the equal-weighted SPY.
The strategy (blue line) shows an impressive return of 17.71% per year albeit with a large drawdown of 63%. We then see some more system statistics and details.
As you can see, the money flow index system has performed extremely well since 1996 so this might be an idea that is worth exploring further.
Overall, I have been pleasantly surprised with the Finviz backtester.
I can now run some very quick initial tests and if I find something useful I can take it into Amibroker and explore it further there.
If you are an experienced programmer then you will probably find it too basic for your needs.
But if you are a relative beginner or you want to quickly evaluate simple trade ideas then the backtester is very useful.
Combined with all the other features, Finviz Elite is a great value for money trading product.
Thank You For Reading
Joe Marwood is an independent trader and the founder of Decoding Markets. He worked as a professional futures trader and has a passion for investing and building mechanical trading strategies. If you are interested in more quantitative trading strategies, investing ideas and tutorials make sure to check out our program Marwood Research.
This post expresses the opinions of the writer and is for information or entertainment purposes only. It is not a recommendation or personalised investment advice. Joe Marwood is not a registered financial advisor or certified analyst. The reader agrees to assume all risk resulting from the application of any of the information provided. Past performance, historical or simulated results are not a reliable indicator of future returns and may not account for real world settings. Financial trading is full of risk and margin trading can lead to financial losses totalling more than what is in your investment account. We take care to present accurate analysis but mistakes in backtesting and presenting of analysis regularly occur. Please read the Full disclaimer.
Thank you to everyone who takes the time to leave a comment. Your feedback, constructive criticism and identification of mistakes is welcome. In order to concentrate on work I may not have time to respond to all comments.