Any investor/trader reaches a certain point of their financial journey where the logical question pops: “Can I beat the market? Is it at all possible to beat the market in the long run, consistently?”.
There is a bigger question here, should I trade/invest on my own or go for mutual fund/financial advisor? Should i simply keep investing in an index?
Somewhere along the way all these mix up. When you are reading below, keep in mind that I’m relatively “active” trader even if measured by my longer term “swing/investment” strategy and I also use leverage.
As a rule of the thumb, those who seek active management of their funds, usually tolerate higher risk. Those investors are willing to accept higher drawdowns but are also looking for better returns (than the benchmark).
Such individuals are usually in their 20s/30s/40s. The common concept is that the older you grow, the lower the risk you should take.
Below we are going to look at raw numbers, where taxes, dividends, inflation and cost of trading are not taken into account, simply because they will vary depending on your residency.
The purpose of this article is to show whether it is:
Below we are going to have a look at two of my accounts. The first one (Alfa) is probably one of the oldest accounts I have kept in Meta Trader Platform. The second one is based on FX Delta software/strategy and also traded in MetaTrader for the sole purpose of using third party verification like myfxbook and fx blue, for both of them.
On a side note, MT5 starts to look more like it, especially when it comes to algorithmic trading but this is another subject.
The longer term account, available on myfxbook HERE accounts for the period between February 28th 2017 till December 30th 2021 (last position closed on this date at the time of writing). This is almost 5 years worth of data slightly above 1000 trades (1016) and return on investment of 120% compared to SP500’s performance for the same period of time of 102%