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Black-Litterman Implementations

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A new implementation of the Black-Litterman model in Excel is available on the implementations page.

An implementation of the Black-Litterman model in python and the worked example from the He and Litterman 1999 paper (Updated Jun 22 2012)

An excel spreadsheet showing the example worked in the He and Litterman paper (Updated Jun 26 2012)

New paper focusing on Tau and if you really need it (Updated 1 November 2010)

MATLAB and SciLAB implementations of the model

My paper on the Black-Litterman Model (Updated 16 February 2009)

An applet which implements the Black-Litterman model

Implementations

This section lists some freely available implementations of the Black-Litterman model in various languages.

bl.xls and idz_bl.xls contain Excel worksheet with the example from He and Litterman (1999) and Idzorek (2005) respectively.

Implementation of the Black-Litterman model with Excel - VBA (by graduate engineering students from ECE Paris: Jean-Baptiste Bassani, Alexandre Bontemps, Timothée de Chateauvieux, Igor Clercq, Matthieu Degraeve) ready to use on any Yahoo Finance shares. This is an Excel file providing an intuitive user interface to manage views, outputs and other features (refresh share's prices, currency selection $ or €). Contact: blacklitterman.ece@gmail.com

hl.py and bl_idz.py contain worked examples for He and Litterman (1999) and Idzorek (2005) respectively implemented in python using numpy and scipy.

hlbl.m and hlblacklitterman.m contain a MATLAB implementation along with the test data from the He and Litterman, 1999. It has been modified to include calculations of He and Litterman's Lambda and Theil's Theta which measures the share of the posterior contributed by the prior and the views.

altblacklitterman.m contains a MATLAB implementation of the Alternative Reference Model which can be used with hlbl.m.

bl.sci contains a SciLab implementation of the Black-Litterman model, sample data from He and Litterman, 1999 and all the examples from their paper as well.

bl_metrics.sci contains a SciLab implementation of the Black-Litterman model with sample data from He and Litterman, 1999. It illustrates the various metrics from my paper, including Fusai and Meucci's Consistency Measure, and Braga and Natale's TEV work.

bl_idzorek.sci contains a SciLab implementation of the example from Idzorek (2005) illustrating his method of specifying and using the investors confidence in the view.

akutan.org has a all the Java implementations of the Black-Litterman model described in my paper along with many of the extensions. It also has the code for the Black-Litterman applet available on this site.

ojalgo.org has another implementation of the Black-Litterman model from the Idzorek paper.

Attilio Meucci has several more papers and some MATLAB code for implementing his ideas on his website.

The BLCOP package in the R project is an implementation of the Black-Litterman and copula opinion pooling frameworks from the papers by Attilio Meucci.

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