The final step of the custom model creation process is to set the parameters for your model's backtest on the "Create" tab.
Start Date
The Start Date field will default as far back as possible based on your model's universe and rule set, but you can select a more recent start date if you want.
Once your model is saved, you can evaluate it over any timeframe, so it is probably a good idea to get as much history as possible rather than restricting yourself from the start.
Starting Cash
The value entered into the Starting Cash field serves as the starting value for the model growth illustration on the model preview page as well as the starting price for your model on its Point & Figure chart.
Model Growth Illustration
Model Point & Figure Chart
You can choose a different starting value to display on any Custom PDF you design using the Content Manager tool, so there is no need to customize the starting value to match the value of a client account in this step of the process.
Popular Benchmarks
The Popular Benchmarks field allows you to select from a list of preloaded benchmark options including commonly used single asset class benchmarks, multi-asset benchmarks for asset allocation models, and other custom models you have created.
Make sure to choose a total return benchmark if total return tickers were used in your model universe. The popular benchmarks dropdown includes both total return and price return options for many of the benchmarks listed.
Alternative Benchmarks
The Alternative Benchmarks field allows you to type in any ticker to use as your model's benchmark.
Advisory Fee
The Advisory Fee field allows you to add the fee you would charge a client to manage this model to the model illustration. Adding a fee is important if you intend to create Custom PDFs using the Content Manager tool as showing net-of-fees performance is essential to keeping performance illustrations compliant.
If you are creating a model of models, be careful not to add multiple layers of fees. If you intend to blend together multiple models to create a full allocation, add your advisory fee to the asset allocation model but leave it off of the underlying models so you do not end up counting the fee twice.
Create Preview
Once your settings are complete, click Create Preview in the top right corner to run your backtest.