Some people say that Buy and Hold is the best strategy and can't be beaten. They hear phrases like
95% of traders lose money and automatically assume that all trading is bad and markets can not be outperformed.
In my Medium post, Im going to show you, that holding might not be the best option if you put in a little bit of work. To do that, I compare Buy and Hold returns for 25 coins with several basic trend-following strategies in different time periods (over 3.5 years of data and then a little extra).READ THE POST HERE!The source code of strategies and raw test results (CSV) is pushed to my
Github.
Let me know what you think! Thanks!
At the end of the day everything depends on your skills and how long are you willing to work to improve them, it is obvious that if you are a good trader and you can outperform the markets that you are going to be capable of earning more money than someone that just hold their coins, but how many people are capable of doing this? This is where the statistic about the 95% of traders being long term losers becomes important.
This is because it is way easier to become a reasonable good investor that earns money by buying and holding their coins for a very long time than it is to become a good trader and not only it is easier it is way faster as well, at least in terms of the time that you need to dedicate to the activity, and when you take that into account then it is obvious why people prefer to become long term holders.