4 ms·
Have any of the strategies in these trading modules resulted in better than market average returns?
by jjeaff 6y ago
Have any of the strategies in these trading modules resulted in better than market average returns?
- itake 6y agoFrom what I understand, this is not the goal of this tool. Their goal is to smooth out volatility, at the cost of performance. Instead of "100% VOO", they invest in a more balanced portfolio like 80% stocks/20% bonds. This means at any given point your portfolio will not have big swings in value, in case you need to withdraw money (like to buy a house) at a sub-optimal time.
- tjs8rj 6y agoDifferent modules have different goals. Some, like the crypto ones, have easily crushed the strategy of "buy and hold an index of the total market", the hedge fund strategy and the leveraged strategy have done so as well over their existence, and even have better "risk-adjusted returns" as represented in the Sharpe ratio. Some, like the pair trading models or the classic section don't seek to beat the market, but try to minimized volatility regardless of market or provide an easy "all weather portfolio" one can save their emotions by happily holding regardless of the market direction. In the future I want to add more that index FAANG companies, that hedge against inflation, that take advantage of binary outcomes or that focus on income instead of appreciation. In short, many of them beat the market and do so with less risk (look at their Sharpe ratio), many don't because they aren't seeking to.