sorry, those questions are important to me. because this is just 2013 all over again. to me its important to know the benchmark and compare different strategies against its peers.
if SPY is up 25%, why would i pay $2k in fee to make 20% and net 10% in the end.
If SPY is up 25% with a DD of 10%, why would i invest in a strategy to make 13% with a DD of 5%.
yes, back testing is meaning less, but it shows me which strategy have a higher up capture and a lower down capture.
If SPY is up 25% and DD is 10%, and a strategy captures 20% of the upside but only had 4% of the DD then i know that strategy is performing above its peers and worth the “fee”. I’m not strictly looking at this as performance or DD base only.
in regarding TOS or Not, that is just a behavioral tracking i keep track for my self in regarding how each of manager behaves during big gains and big loss. so i wont have the same manager behavior over lap. I don’t want all my manager to be DD adverse, exit positions when there is a pullback, but i don’t want all my manager to also ride thru every correction. i like some of the manager who will let winner run, but some managers take profits early. so i tend to have half of my c2 strategy TOS and half of it not TOS. and overtime, it does make a difference. because i see the tendency of non TOS strategy tend to do really well first 6 months, then everything tapers off. they become DD adverse, and gains no longer their primary goal. they end up focus mainly on risk management and not to lose subscribers. TOS manager tend to show me little more consistency on gains, as gain from their account usually greater than what they make from c2 subs.
i’m just trying to diversify between the 8-9 c2 strategy i use, and make sure i don’t have management style overlap.