Free ETF Portfolio Simulator: practical guide

Why simulate before investing

A free ETF portfolio simulator helps you test a strategy before committing real capital. The goal is to verify whether your plan remains coherent across different market scenarios.

With a well-structured simulation, you can:

• compare lump-sum investing (PIC) with recurring contributions (PAC),
• measure the impact of rebalancing,
• evaluate return, volatility, and drawdown before execution.

What to focus on in a backtest

Do not look only at the final portfolio value. The most useful metrics are:

1. annualized return;
2. maximum drawdown;
3. volatility;
4. result stability across different time windows.

For the full workflow, use Wallible’s Portfolio Simulator guide .

PIC vs PAC: how to interpret results

• PIC: immediate market exposure, more sensitive to entry timing.
• PAC: gradual entry, usually more stable from a behavioral perspective.

The right choice depends on time horizon, risk tolerance, and execution discipline.

From simulation to execution

Once the backtest is sound, the key step is disciplined implementation:

• define a clear target allocation;
• set a simple rebalancing rule;
• monitor plan vs actual results consistently.

The objective is not to predict markets, but to apply a coherent process over time.

Common mistakes

• drawing conclusions from too short a period;
• ignoring drawdown;
• changing strategy at every volatility phase.

A simulator does not remove risk, but it improves decision quality.