Thank you Haejin. This strategy is working great for me.
Would it be beneficial to also leave stop loss orders in place to limit down side loss? And if so, is there a stop loss level (2%, 5%, 10%, etc) that you would recommend?
Thanks again for so generously sharing your knowledge with us.
Any idea how far back this was back tested?
Hi @brojitzu (+@cryptobl0ck)
I back tested this myself. The four funds start on different dates, so I began my backtest when they all existed - 30/11/2010. I got similar numbers as what @haejin said.
I included tax and brokerage fees in my backtests, removing tax from the amount invested each time there was a capital event, and the result was around 44% annualised return (44% per year). Note - they are MY expected tax and brokerage fees for my scenario - if you invest a lot more (or less) and use a different platform, those fees will be different. But assuming my numbers are "around average" - it gives you a fair indication.
I also did a simpler back test (no tax/brokerage considered) on the "less aggressive" suggested funds, and got lower, but good, annualised returns. If I recall correctly it was around 35% annualised.
I don't think I ever saw specific info on the backtests that Haejin conducted. There is a little more detail in his original post where he explained this strategy - https://steemkr.com/bitcoin/@haejin/would-you-like-to-beat-every-mutual-fund-manager-here-is-an-aggressive-equity-portfolio-that-can-average-47-per-year-or-more