AutoTrade or Buy & Hold?

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  • #96428 quote
    GraHal
    Participant
    Master

    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?

    #96433 quote
    Vonasi
    Moderator
    Master

    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?

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AutoTrade or Buy & Hold?


General Trading: Market Analysis & Manual Trading

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This topic contains 1 reply,
has 2 voices, and was last updated by Vonasi
6 years, 11 months ago.

Topic Details
Forum: General Trading: Market Analysis & Manual Trading
Language: English
Started: 04/14/2019
Status: Active
Attachments: No files
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