Archive for February 2025

Introduction At Investoristics, we recognize that backtesting is often met with skepticism, particularly when results indicate significant outperformance over historical periods. Critics argue that backtests are prone to overfitting, survivorship bias, and unrealistic assumptions. However, not all backtests are created equal. The rigor and methodology behind a strategy significantly influence how well it translates into…

Introduction Investors today face a fundamental challenge: how to achieve consistent, high returns while effectively managing risk. Many active strategies struggle to outperform passive benchmarks over time, and market volatility makes traditional approaches prone to deep drawdowns. However, a well-constructed quantitative model can offer an edge by systematically selecting stocks that balance value, growth, momentum,…

A four-factor investment model that incorporates value, growth, momentum, and quality can be particularly effective during inflationary times, especially when the POTUS insists on tariffs, which can introduce additional economic uncertainty and market volatility. This approach leverages the strengths of each factor to create a diversified and resilient equity portfolio, while quarterly rebalancing helps to…