Hey guys, talking in terms of position trading :-
I have read all over the Internet that our strategy will lose our edge over a period of time but when you read books by Andreas clenow (stocks on the move etc) he preaches to follow the strategy for a long period of time(20 years) . Andreas says that our strategy will outperform the index if we do it for a long period of time.
This seems to be true to some extent, I have backtested a simple moving average crossover. Over a period of twenty years the cagr is pretty impressive(25%, though the volatility is high and we probably have deep drawdowns around 20-30%) but still if a simple strategy as this can give 25+ returns over a long period of time why not just follow this with proper risk and money management?
Is this true or am I being totally stupid? Would love to hear from fellow traders and the Zerodha team
@siva-reddy @Bhuvan @nithin @rupeshmandal