Ya, I don't care too much about valuations. Many think stock fundamentals is all about annual report type accounting numbers, that doesn't figure with me too much as I tend to trade speculative stocks, new issues, emerging companies, explorers.
Valuation is misunderstood by most market participants (even many fund managers/analysts). This is because the driver of multiples (valuation itself) is macro-driven (and most analysts, and many fund managers, are micro focused). You can't look at today's multiple and make a judgement on value -- it's like using charts to trade.
https://collective2.com/details/128743489 https://collective2.com/details/133729006 https://collective2.com/details/117442067
OP assumes 2% capital for each trade, and win half of that on avaerage. So OP assumes day traders make 50% profit on each trade and never make losing trade. What a joke.