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Hi All,

I have been looking at implementing a profit latch on some of my screens, and I had a question about implementation. Specifically, the entry part is easy: when buying new shares for a screen, enter a GTC sell order at the profit latch point (let's say 20% for ease).

The question is what to do when the profit latch triggers: do you (1) stay in cash until your next trade date, (2) roll into the next position that you did not have on your screen, or (3) set a close trailing stop and ratchet that up until the rebalance date.

Also, what do you do if the stock reappears on your screen at the next rebalance date? Do you: (1) Repurchase it with a new PL point, (2) ignore it and stay in cash, (3) Reset the PL point if you haven't yet sold it from last period, or (4) Buy the next stock down the list.

Lastly, at least for my brokers, the interest on cash is terrible. Do you buy a bond fund or MM for the time until next rebalance?

Any details on how one implements the PL strategy would be appreciated.

Thanks, Gabriel (aka: Hiphop)
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