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On October 3, 2025, American stock traded with a volume of $0.30 billion, marking a 40% increase from the previous day and ranking it 364th in terms of trading activity across the market. Concurrently, American International Group (AIG) rose by 1.73%.
To execute a precise back-test, three key parameters require clarification: First, define the market universe—whether it encompasses U.S.-listed equities or extends to other markets. Second, determine the pricing and execution methodology, such as buying at the close of one day and selling at the close of the next, or alternative conventions like open-to-close trades. Third, specify the portfolio measurement approach, including whether to equally weight all 500 stocks daily to track portfolio returns or calculate the average next-day return per individual stock. Confirming these details will ensure the back-test aligns with intended objectives.
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