If a Srategy / AutoSystem results in Gain that is less than Buy & Hold then is it worth trading?
- What % inferior Gain ((System vs BuyHold) makes Autotrading worth the risk of trading?
If System Drawdown is less than Buy&Hold Drawdown then it may well be worth trading?
- What % inferior Drawdown (System vs BuyHold) makes Autotrading worth the risk of trading?
Hope above makes sense?
I’d best finish before I really start rambling 🙂 … any thoughts or comments appreciated?
These are always my two first goals.
First I want to beat buy and hold – but this is very difficult to do with out averaging down indices which requires huge starting capital.
Second I want to create a smoother equity curve than the buy and hold equity curve, thus reducing draw down.
I then have a third goal – make a higher percentage return on average per year than I could in lower risk investment opportunities. I can get easily 6 to 7% in UK P2P lending with lower risk to my capital thanks to provision funds etc so why would I want to risk massive draw down and possible capital loss to get 3% return spread betting?