AutoTrade or Buy & Hold?

• 04/14/2019 at 8:19 PM #96428
  GraHal

  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?

  

  GraHal

  Participant

  Topics: 214

  Replies: 8827

  Been thanked: 2198 times
  04/14/2019 at 9:06 PM #96433
  Vonasi

  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?

  1 user thanked author for this post.

  GraHal

  

  Vonasi

  Moderator

  Topics: 192

  Replies: 5088

  Been thanked: 1811 times
• Author
  Posts