Sharpe Ratio of 1.5 or higher for at least 3 years in a row. Largest peak to valley drawdown below 10%.
Actually Mark, you are the only trader I know who knows how to use sentiment to an advantage. Other people see several similar opinions and think they have figured it out and immediately start looking the other way. It is a psychological problem: desire to make money is substituted with desire to be different. Noble, but not applicable to markets.
Denleo
Well, I don't know what my sharpe ratio is, but I do know that my Quarterly SD has consistently been about 1/3 that of the market for years and years now and that I am ahead of the S&P in both my portfolio styles, since inception (2000 and 2003).
I do think I've had a draw down or two in both that briefly broke 10%, but I'm not sure it lasted a month.
Now, Gary Smith also uses sentiment and he claims it was key to his improved results. I can tell you, it has been key to my improved nocturnal rest and gastro-intestinal health.
One point of note, if you aren't different from everyone else, you've got little hope of outperforming them. Of course, you also give yourself a good chance of underperforming them, too, unless you give it significant thought.
Mark
