I call this the Pain to Gain Ratio, and yes it is most important for any trading strategy. Along with Average Recovery Time --- trough to new high water mark.
I don't think it's very hard to capture greater than 20% per year - no way --- what's the hardest is BOTH:
- Keeping Max DD below 15%
- Attracting enough capital (in addition to your own capital) and generating fees off this capital sufficient to live off
At my stage, after 27 months executing a manual strategy with proven consistent edge, I have found the only way to survive financially living off trading 100% is to run SUB STRATEGIES that are 2x and 3x and 4x risk multiplied. That is, until you either have $150,000 USD of your own capital OR you are managing at least $1.5 million AUM