What do the Nasdaq 100 buy and hold returns look like when measuring them as a day-to-day trading program?
Some of the biggest metrics are:
Average Annual Return = 14.62%
Maximum Drawdown = 82.90%
Average Annual Return/Max Drawdown = .176
The longest recovery was 15 years and 8 months. This was from the Dot Com peak to 6 years after Quantitative Easing started. (3/27/2000 - 11/03/2015.
The Sharpe Ratio is 0.66, which certainly does not pass any sharpe ratio tests for short term trading programs.
It is important to keep the big picture in mind. There is a balance between staying with the trend and managing risk.
How does this compare to your trading program?
