The mutual fund s daily net asset value is downloaded off the internet. The Monocle database is organized as a spreadsheet, with the names of the funds down the left-hand column. These measures are mathematically sophisticated, but the software uses plain language. It is a worst-case scenario that immediately makes sense to novices learning the program. The dynamic allocation module will back-test trading strategies to see how well they would have fared in the past.
Back testing is common in stock-trading software.
But this program differs from stock-trading programs in two important respects. It tests not only single trading vehicles but also portfolios of mutual funds. And it takes into account the rules you need to follow to minimize your transaction costs. For example, there may be a requirement to stick with a newly purchased fund for 30 days. Monocle takes these rules into account in testing trading systems, so you don't come up with a strategy you cannot use in the real world.