Estimated Trading Costs in Backtests

When backtesting symphonies that trade stocks and ETFs on Composer, these models include estimated trading costs that are broken down into regulatory fees and slippage.

Subscription

A Composer subscription is not included by default. You can choose to include estimates for a Composer subscription ($40 monthly) in Backtests. Remember, the subscription is charged per user, not per symphony. If you invest in multiple symphonies, the effective fee per symphony is significantly lower than what is modeled.

Regulatory Fees

Regulatory Trading Fees are set by law and regulation, and are subject to change without notice.  You should always check the current posted Fee Schedule before placing trades. These fees are not retained by Composer. Please see Composer’s fee schedule for details on the regulatory fees that are included in backtest models.

Slippage

Slippage reflects the potential cost difference between hypothetical trades in your backtest and actual trades that might encounter price movement and spread. The amount of slippage is influenced by market conditions, liquidity, the size of the order, and bid-ask spreads.

• Default Setting: The default slippage setting in backtests is 1 basis points (bps), which can be adjusted to model different market conditions.
• Customizing Slippage Estimates: Adjust the slippage settings to simulate how your symphony might perform in varying market scenarios, such as during high volatility. This helps evaluate the robustness of your symphony under different market stresses.

Incorporating these estimated costs into your backtests gives you a clearer view of potential live-trade scenarios of your symphonies, enabling you to make more informed decisions when investing with Composer.

For disclosures on the Composer by SoFi platform visit https://www.composer.trade/disclosures. 

Please see Composer’s fee schedule for other fees not directly related to trading.