ETFreplay blog | 2000 to 2003 focus QQQ’s large drawdown backtest

Study many different sub-periods for many different markets.  It helps you understand scenarios, it helps you understand strengths and weaknesses of various techniques in backtesting.

Learn how to put the odds in your favor.   If you study many different time periods across many types of markets, you will gain understanding of a strategy that is fragile vs a strategy that is more durable.   You will have ideas that cannot be supported and you realize their weaknesses.   Running bad backtests and learning from that is part of the process.

Below is one look at the 2000-2003 bear market.  We suggest you look at that time period and many other time periods using many different types of funds.   QQQ’s downturn was especially bad due to the extended run-up in the prior years (QQQ index existed in prior years but the ETF product QQQ of course did not exist prior to the middle of 1999). 

 **A pro subscription allows you to backtest to 12/31/99 using daily total return data.