/biz/ - Business & Finance

>>30026672
>i dont care about QLD 70% drawdowns
what do you even think "going bust" is lol
just set a trailing stop i guess, figure out what's the most efficient

for example a 15% or 20% trailing stop loss on SPY (buy at start of next quarter when it triggers) can help you retain your gains far better than just the passive buy-and-hold, because if it dumps down that much, it's probably a crash and you may as well catch the falling knife

>>28203189
only good for ETFs
individual stocks you should already have your price targets and proper exit strategy in place

pic related on trailing stop loss performance for ETFs. -15% is the sweet point (systematic strategy to buy back in next quarter after it triggers)
>https://www.quant-investing.com/blogs/general/2015/02/16/truths-about-stop-losses-that-nobody-wants-to-believe
individual stocks are too volatile to have a strategy like that, and you would only set a trailing stop on a portion of your position with the mindset of taking profit on that portion already

>>26239299
i think the point was a trailing stop as tight as 5% will trigger prematurely.
It may as well be a limit sell order

pic related. even for more stable index funds it's terrible
>When a stop-loss limit was reached, the stocks were sold and cash was held until the next quarter when it was reinvested.
>The only stop-loss level that did worse than the buy-and-hold (B-H) portfolio, with a negative average return of 0.12% and cumulative return of -8.14%, was from a trailing stop-loss strategy with 5% loss limit.