Fix the universe and ranking
State which funds are eligible, when they entered the universe and how returns are calculated. Define a lookback window, ranking direction, number of selections and tie-breaking rule. Using today’s available funds throughout history can distort the test.
Model the rebalance
Specify a calendar, signal observation time and executable trade time. Include transaction costs and rules for assets without sufficient history. State whether weights are equal, fixed or derived from another calculation. Cash handling must also be explicit.
Keep comparisons consistent
Compare versions over a common date range with compatible return and cost conventions. Report changes in holdings and turnover alongside aggregate performance. This page describes a research design and does not supply a ranked list of funds to buy.
Turn the method into your research brief
Open the editable template, replace its assumptions and export the rules before implementing a test.
Use this template ↗Sources & references
References support specific definitions or methodological context. Examples and research checklists are explanatory; no performance result is claimed.