Simple trading model that generates an average of 14% per year

Discussion in 'Trading' started by Troy Bombardia, May 2, 2018.

  1. Which means it doesn't account for rebalancing costs and fees... He probably just doubled whatever the SPX did which is not how it works in real life.
     
    #11     May 3, 2018
  2. Exactly. That's how he constructed the "hypothetical SSO".
     
    #12     May 3, 2018
  3. %%
    May do OK??. It may.
    SSO used to pay a small dividend LOL. [ Haven't looked @ that trading system/SSO lately.] BUT I shop some @ WMT[Walmart]+ seldom us my electric vac..... A brush or broom OK/LOL. I dont know why WMT is pulling out of UK.Like the UK fund manger said ;don't use all your bullets -then the elephant comes by.[ I would not use an English elephant hunt illustration if i knew some one hated that] About 95%/+of hunters would like that; some Asians use them for forestry.:cool::cool::caution::caution::D
     
    #13     May 3, 2018
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  4. I have an idea... max out your margin leverage and just hold it for 20 years. Your sure to beat market returns that way if you don’t get liquidated ;)
     
    #14     May 4, 2018
  5. If you are confident to show annual 14% , then you may not have to find other trading logic.

    However, they will NOT show the good logic to you if it is REALLY annual 14%.

    Stock market was running for the last 400 years. If there exist such good trading logic, then someone (some trader and their grandsons) should make
    1.14^400 = 5.780169e+022 times for the 400 years.

    If you think there is NO ONE in the world now, then most likely there is NO such trading logic.
     
    #15     May 6, 2018
  6. Or for short time like only 50 years (from 30 to 80), it becomes 1.14^50 = 700.233 times.
    For example, one with saving of 100K at 30 should be as rich as 7000K at 80.

    Tell me if there is.
     
    #16     May 6, 2018
  7. This is pretty silly as there is increasing tax, trading slippage, living expenses/toys as your net worth increases.
    And yes Warren Buffet averaged 24% over 25 years, so yes there is someone.
     
    #17     May 6, 2018
  8. Is this a repeat of another thread? Or another one is repeating this one? Seems weird.
     
    #18     May 6, 2018

  9. Of course, Buffet showed his performance for more than 50 years (from 1965) clearly.

    His is saying roughly annual 20% compounded. However index is roughly annual 10% as shown is http://www.berkshirehathaway.com/letters/2017ltr.pdf

    Actually anyone who was in NY market (SnP500) with ETF should show annual 10% compounded, even if he never sell during the 50 years.

    Did you?

    PS) With annual 20%, and with 52 years(1965 to 2017), it becomes
    1.2^52 = 13104.63 = 13000 times, which might be the best.

    PS2) Surprisingly, the market itself showed annual 10% for the 52 years !!!!
     
    Last edited: May 6, 2018
    #19     May 6, 2018