We have started Orbit testing on 14st Jan 2021 to investigate Orbit’s performance and how it works on a real market because we can not know Orbit’s performance before testing in a real market. There is a well-known proverb saying that “I never see a bad backtesting result.” It sounds funny, but it sharply pinpoints the biggest pitfall; most modelers can easily fall into. Backtesting is just backtesting, nothing more than that. We should not put too much meaning into it. As far as I know, testing in a real market reveals the truth about it.
Orbit works wells in the testing period, even though the Korean stock market was not in good shape with high volatility (KOSPI Index 3149 -> 3008). We were happy to experience that market state because we can track Orbit’s real performance. The asset management model’s performance is heavily affected by market status; if the market goes up, the performance is good, if down, bad. So if we want to check a model’s performance, doing a test in a bear market is the most reliable way.
Orbit showed a good performance in such a volatile market, ROI is 20.185%, and the winning ratio is 62.5%.
Target Asset Class
As you can see it is not in good shape, the market was highly volatile. It was not an easy market to make profit.
In the test period, Orbit’s ROI is 20.185% whereas market’s one is -4.47%
Orbit outperforms the market five times.
We are excited to believe that Orbit is workable and what we are doing is on the right track. Before the testing, we could not have a firm belief in Orbit. Now Orbit has testified its performance.
After the migration, our whole efforts will focus on crypto ETF powered by Orbit technology. We will update Orbit to the next level using the test result and optimization result. The current Orbit seems to be good when we look at the test, but we have some ideas to improve it. Now we believe that Orbit is our stepping stone for a promising future.