Xuanyu Chen

Factor Momentum Backtest

Monthly top-K momentum strategy backtest with transaction costs, metrics, and reproducible results.

python pandas numpy backtesting finance

#What it is

A backtesting pipeline for a factor momentum strategy: generate momentum signals, form a portfolio on rebalance dates, and evaluate performance with realistic trading costs.

#What I built

  • Signal generation: momentum scores computed from historical returns
  • Portfolio construction: monthly rebalance, top-K selection, equal-weight allocation
  • Backtest engine: daily portfolio returns from weights × daily asset returns
  • Evaluation: CAGR, volatility, Sharpe, max drawdown, turnover + cost impact
  • Reporting: equity curve and comparison tables across cost assumptions

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