Public Publication Content

The 200-Day Fallacy, Part 2, and Why You Never See Bad Backtests

|

The strong historical performance of 200-day moving average cross strategies is a backtest illusion. Investors should be wary of subtle look-ahead biases in backtests. Trend-following strategies can help manage risk, at the expense of poor performance during strong rallies or when equities experience repeated shallow bear markets (Europe in the past five years).

Ned Davis Research | Equities | Europe Focus | Monthly

While you wait, explore additional NDR research and solutions.

Institutional Investors

Custom Research

Wealth Managers

Stock Selection

ETF Selection

HubSpot Form for Publications