No strategy in the world is guaranteed to make money forever. There will be good years and bad years. Just like many other hedge funds or famous traders. Our goal as quant traders or any other investor or individual trader is to beat the SPY buy and hold both in CAGR and in drawdowns(DD). Ideally our CAGR/DD ratio should be better than that of SPY. This can not be achieved by a single strategy. We need multiple strategies that trade multiple products. We should make sure that our strategies can handle black swan events. We need to make sure we have mean reverting strategies that perform well during volatile and downtrending markets along with momentum and trend following strategies that perform well during up trending markets. The stock based strategies in the course has beaten the SPY buy and hold in CAGR/DD ratio but this does not mean it will continue in the future. We have done rigorous test via Monte Carlo simulation in our stock-portfolio based strategies but applying this strategy individually doesn't guarantee success for the future. We need to apply a combination of strategies.
The strategies in the course serve as a foundation to create better strategies. Our students have gone on to create far better strategies with higher CAGR/DD ratio than in our course. But this purely depends on the work ethic and dedication of the students. Just like a football coach or a math tutor, we can only teach and guide you. Whether you will be successful or not purely depends on your work ethic and dedication.
There is a very high degree of risk involved in trading. Past results are not indicative of future returns. quantprogram.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice.
