Legal disclaimer first: by accessing any of Safepine’s services you accept the Terms of Service written in Safepine’s portfolio web-site & acknowledge that Safepine is not a financial advisor!
Introduction
Previously, I wrote a post about how to setup Safepine Core v1.3.x in your own local environment. For paid subscribers it can be accessed here. This post is about the upcoming release of Safepine Core v1.3.2 & what to expect from it.
Once v1.3.2 is released, you can follow along the instructions in this post assuming that you built & run Safepine Core locally.
Settings
After navigating to localhost, you will observe a new tab, Settings, which will provide information about the data provider, lines written to the SQL back-end, start & end dates of data retrieval.
Watchlist
Second tab on the left is the Watchlist. Your data stored within Safepine Core’s back-end is visually represented here. There are a few tools such as a moving average filter & ability to draw lines on the chart. I am planning to implement more tools down the road but given that Safepine Core is open-source individual users are free to make their custom additions.
Figures
The figures tab shows results from back-testing portfolios described in the configuration file. I’ll write a breakdown of each chart & what it represents below.
Total Equity ($12,426.9) (Top-left graph):
This graph shows the evolution of the portfolio's total value over time. The Y-axis represents the portfolio's value in dollars, while the X-axis shows the time range, likely spanning several months.
There are two lines—one that appears jagged is representing the portfolio's market value fluctuations and the smoother one represents the dividend payments received during the time span of the portfolio.
The total equity value at the end is $12,426.9.
Percentage (%24.27) (Top-center graph):
This graph illustrates percentage returns over time, showing how the portfolio has grown in percentage terms. The X-axis again represents time, and the Y-axis measures percentage change.
The blue line shows the buy & hold strategy of SPY ETF and green line shows the discretionary portfolio’s outcome. It is clear that SPY ETF beats the discretionary portfolio within the time-span of the backtest.
Discretionary / Buy & Hold (Top-right histogram):
This histogram compares the daily distribution of returns between two strategies: a discretionary (active management) strategy and a buy-and-hold strategy.
The X-axis represents return ranges, while the Y-axis shows the frequency of those returns. The two colors in the bars may represent the discretionary strategy (green) versus buy-and-hold (blue).
Begin Portfolio Allocation (Bottom-left pie chart):
This pie chart represents the initial allocation of assets in the portfolio.
SPY (S&P 500 ETF) comprises 59.7%, TLT (Treasury Bond ETF) makes up 35.4%, and the remaining 4.9% is held in cash.
End Portfolio Allocation (Bottom-center pie chart):
This pie chart shows the final asset allocation at the end of the period.
SPY’s share increases to 66.2%, TLT’s portion decreases to 27.8%, and cash remains around 5.95%, indicating the portfolio became more equity-heavy over time.
Discretionary Strategy (Bottom-right histogram):
This is another histogram that shows the return distribution for the discretionary strategy alone.
The X-axis represents return ranges, while the Y-axis shows how frequently those returns occurred. It reflects the risk-return profile of the discretionary strategy. Note that this distribution shows the counts instead of probability like the one above.