A single trading system that generates 50% per year for three years is likely tuned to a particular market condition and will likely fall apart when market conditions change. That being said what if instead you had a collection of trading systems for various market regimes and all of the systems at least had a profit factor of 3. Let's also say for example that each system risked 1% of account equity per trade. That averages out to a 1% gain per trade. Given this scenario, just one trade per week will put you well over the 50% annual return mark. Intra-day futures strategies lend themselves to this approach though it would be challenging to accomplish on just $10,000.
One point that I found interesting is the requirement to be uncorrelated to the market and how rare it is.
Sure you can be uncorrelated, but i dont think its that rare
I agree on having multiple systems. But now you are just manually trading/timing the market and baktests becomebuseless You transaction costs increase as well while returns suffer.
The problem with intra-day strats, imo, is that they don't really correlate to trends/regimes, so every day is unique. Maybe you can make some asamptions based on current volatility. To me, unless I understand the catalyst, I don't want to be part of the intra-day move/noise.
It was not meant to discourage but provide a benchmark professionals use. Sure you can make 50% on your 10k account, but don't expect to sustain this return as your account grows(keeping draw downs in check that is).
