How do you validate if your idea works?
How do you know if not for sure, then at least historically, that what you do works?
The answer is simple.
You see what happens if you performed this strategy over the past ten years.
You test it. And you test it using tools the professionals have access to and consider their golden goose.
1566.10% Returns over 10 years. Or about 156.6% returns a year on average factoring in compound growth. The white line indicates the performance of the S&P 500 Index.We used a Bloomberg terminal to test and determine if our chosen strategy would have performed well over the past ten years.
What does ‘perform well’ mean?
I would call outperforming the major indexes around the world by a large margin “performing well”.
There are two reasons why.
First: Most investors don’t beat the index. That includes
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