A trader eventually comes across the statistic that 90% of traders fail to make money when trading the stock market. This statistic deems that over time 80% lose, 10% break even and 10% make money consistently. Still trading attracts millions of people in the attempt to beat the market and make money.
To quantify how bad the fact of 90% losing money is I compared it to a coin flip trading bot which makes a trading decision based on a virtual coin flip random(0,1) 🤖
- Trading $QQQ
- Random enter and exit on 30min intervals
- No stop loss
- Always exit EOD (no hold over night)
- 100 simulations per year to smooth it out
The results
Year over year performance.