Hey everyone! As I build out my understanding of strategy design and risk management, I keep coming back to a fundamental question: What is a realistic expectation for annual returns, and when is active trading actually worth the effort compared to passive investing? We know that long-term passive indexing (like holding the S&P 500) historically yields around 8%–10% per year with virtually zero daily effort. For those of you running systematic or active trading strategies: 1. Realistic Benchmarks: What annual return (or Sharpe Ratio) do you target to justify the extra time, market risk, and transaction costs of active trading? 2. Trading vs. Investing: In your experience, at what point does active trading truly outpace a solid "buy and hold" passive portfolio once you account for drawdown and effort? Would love to hear your perspectives on setting grounded expectations! 🚀

Let's test and talk about it together below 👇👇👇