I sort of agree, although trading with decent edge can do a lot better than 9% and with DD much better than index - but its hard work.
Still, one reason for someone with mediocre system to still trade it could be to diversify and reduce dd at portfolio level. So Maybe you make less than index but DD is much better than index. Yes can use leverage to increase returns, depending on how much leverage is available, but someone maybe does not want extra returns and is only looking at risk reduction. Also perhaps this system needs very little effort ( say once a month decision etc) and that could make it worthwhile.
DD is different in index fund. You can simply wait for some years till central banks print money and indices reach new high. This has happened before and will again. In trading this is not there. If you are able to beat nifty index returns per year or crossed 9% then great if not better to get a MF.
There are few people called index fund millionaires . Google them out
yes i have been investor for much longer, only scaled up trading in last few years once I found an edge.
Anyway, point is someone might still prefer say a system that gives 1 % less returns a year but works well in reducing overall risk. Same reason why someone might prefer to invest in say a mix of debt equity and gold rather than all in equity.
But i agree, 9-10% avg returns per year is too low for trading, just invest in a mix of assets and make better use of time.
Only one parameter to tweak will be great. You can live with two. Three is bit of a stretch. Donât go beyond three.
Donât worry. There wonât be many to follow your simple strategy. Even if that was the case as long as you stick to liquid instruments it shouldnât matter.