Broken backtests leave quant researchers at a loss

As historical data loses relevance, quants must find new ways to validate their theories

Investment prospectuses famously contain the standard disclaimer that past performance is no guarantee of future returns. It’s a rider that is usually ignored – even by those in the industry.

“The truth is, most investors treat past performance as the one and only guide to future returns,” says Anthony Morris, who heads quantitative strategies at Nomura.  

Quant strategies in particular are built using backtests, which show how they would have performed during long tracts of history.


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here