A recent plunge in strategy stocks has sparked fresh crypto panic, according to TipRanks. The firm's Smart Score performance is based on backtested results, which are not indicative of future actual results.
The model used by TipRanks assumes that XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading.
Backtested performance shows a significant drop in returns, highlighting the limitations of using historical data to predict future outcomes.