Disclaimer
The performance calculations for the strategies throughout this book were done with the backtesting feature of the Research Wizard using the DBCMHIST database and consist of the total return (price changes + dividends) of an equal weighted portfolio. Returns are calculated on a specified periodic basis (most often one or four weeks) and assume no transaction costs. The portfolio is rebalanced at the start of each new period. Returns can be stated as either annualized or compounded.
Stock trading/investing involves risk, and you can lose some or all of your investment. Hypothetical or backtested results may not always be duplicated in the real world. Backtesting can at times produce an unintended look-ahead bias. Results can also at times be over or understated due to the possible exclusion of inactive companies. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading, not the least of which is the ability to withstand losses or to adhere to a particular trading strategy in spite of trading losses. These are material points that can also adversely affect actual trading results. The Research Wizard program has been aligned, to the extent possible, to eliminate look-ahead bias. Zacks, however, cannot make any guarantees in regard to this or any other possible limitation. For more information on backtesting, please go to: www.zacks.com/performance.
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