I don't expect him to come up with 50 algos when he started in 2012...though it's possible to. But he's not showing real-time results for ANY algos except in 2022. Did all of his earlier attempts fail? And no, there's no guarantee of anything in the markets. My point is the "basket full of non-correlated algos running while I sleep" idea sounds great but is MUCH harder in practice and very rarely works at the retail level.
Be careful, there. Kevin Davey won contests at World Cup in like 2004 or something. So did Larry Williams (and later his daughter). If you're trading aggressive, leveraged strategies, you're likely to have great years where you make over 100% and horrible drawdowns at other times. Try to find someone who's consistently beaten the S&P 500 on a risk-adjusted basis since, say 2009.
Since 2009 consistenly beaten SP500 ? Impossible for the retail traders what you are asking from him. There you need access to hedge fund and CTA database and here you cannot buy systems from them or even can see individual trades. Maybe then one need to look on gurufocus, but this is not the end of story too.
Hello MKTrader, Thanks for the advise. What do you mean by "risk-adjusted basis"? Can you give an example please?
Right. So my point is all the effort to find or design a bunch of retail algos AND manage them (as most have short shelf lives if they're profitable at all) is simply not worth it...at least for me. Been there, done that. You're probably better off doing non-correlated, lower-risk real estate strategies like tax liens, private lending, etc. if you want to get low double-digit returns outside of stocks.
No offense, man, but that's what search engines are for. The most basic would be to divide the compounded annual return over the worst drawdown of a period. But if you're comparing hypothetical backtested strategies vs. the real-time performance of the S&P 500, that's not a fair test.
A workaround could be a moving average on the equity curve so you have trailing stop in place when the strategy is not working anymore. Thus you cannot loose all your previous profits. Of course it should not stop working immediate when you start trading it therefore. Otherwise you need to build everything from scratch which can take many years, just to say it again. And you will not earn anything before you are ready with your custom built system. My two cents.
LOL, now you go into real estates and lending space. These are just another bets, there is no sure double digit return guaranteed anywhere. I hope you understand the real estate market deeply and the other markets you mentioned. It seems you have no trust in whatsoever published results anywhere (on internet). He is looking for higher returns he already said, so having no risk is no fun as always. And you are just mentioning other lower correlations bet. You should not do that, it might only confuse SimpleMeLike with no further improvement for him.
Hello MKTrader, I perfectly understand. The fair test is real-time strategies vs real-time performance of the S&P 500 index.