Jim wrote:I guess we can't answer absolutely, as there may be many strategiesfor purchasing and holding under specific circumstances, for whichstop losses do add a lot of value. I don't know 'em, all I can say isthat they aren't the strategies that are used and tested here.It is certainly true that I have not found any stop-loss approach applied to MI screens that works consistently well. It has not been for lack of time and effort.Interestingly, I've spent the last year building a new trading system which I've almost completed which has stop-loss as one of the most important aspects of the system. It is a 4.5% stop-loss. The trading system is invested about 10-12% of the time and is in treasuries the rest. The CAGR is around 45-50%.As you can see, my focus has been on all but eliminating exposure to the market, and when exposed, limiting drawdown as much as absolutely possible. It was a major under-taking, but very much worth the effort.
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