I'm working on a simple stock scoring model consisiting of 3 factors:
2.liquidity of the stock
3.the value at risk
we defined 3 intervals for each factor and we assigned the intervals to scores (1 or 2 or 3)
the final rating is the following:
Score=25% marketcapscore +25% liquidityscore+ 50% varscore
So, how can i back test my scorig model ?