T
he performance of TipRanks Smart Score is based on backtested results, which are not a guarantee of future actual outcomes. These results reflect the hypothetical performance of a strategy that has never been offered to investors and do not represent real returns achieved by any investor. Backtesting involves applying a model to historical data with assumptions that may or may not be realistic and are subject to potential losses.

    Key assumptions include: the ability to purchase recommended securities and sufficient market liquidity for all trades, which can significantly impact backtested returns if altered. Certain modeling assumptions are unlikely to occur in reality, and no guarantees are made regarding their reasonableness. This information is provided solely for illustrative purposes.

    Backtesting has inherent limitations, as it relies on hindsight and does not account for actual trading or the influence of significant economic and market factors on decision-making. Since trades were never executed, results may have over- or under-compensated for certain market factors, such as liquidity issues. Additionally, backtesting allows for adjustments to maximize past returns, which can lead to significantly different actual performance.

    Backtested results are presented gross-of fees and do not include the impact of transaction costs, management fees, performance fees, or expenses. Regulatory considerations regarding fee presentation must be taken into account. No cash balances or cash flows are included in the calculation.