Hello everybody,
I hope I didn't offend you with this rather pessimistic title :)
Unlike a lot of people here, I'm not a trader/economist who is learning to code but rather the opposite.
I am a developer who is learning to trade.
I've been developing a strategy for several months now (using the trading view pinescript and recently in python after discovering QC).
I've came up with a strategy that (to me) looks coherent and functional.
My algo has a winning trade percentage of ~75% after backtesting it on many different markets be it stocks or crypto.
But here is my question:
What's the point of trading in a market where the best strategy would be to buy and hold?
Here are some example:
- AMZN backtest since 2010 Net Profit: 573% Buy & Hold Return: 2403%
- AAPL backtest since 2010 Net Profit: 439% Buy & Hold Return: 1415%
- TSLA backtest since 2010 Net Profit: 1083% Buy & Hold Return: 7444 %
- MSFT backtest since 2010 Net Profit: 119% Buy & Hold Return: 597%
- BTCUSD backtest since 2016 Net Profit: 1506% Buy & Hold Return: 3411%
- LTCUSD backtest since 2016 Net Profit: 203% Buy & Hold Return: 1511%
- ETHUSD backtest since 2016 Net Profit: 25171% Buy & Hold Return: 9893% (the exception to the rule)
Should I consider a strategy that does not outperform the market as invalid?
I hope to learn a lot from you all, Thanks.