Stocks & Commodities V. 43:04 (14–25): Do Stops Really Work? by Perry J. Kaufman

Stocks & Commodities V. 43:04 (14–25): Do Stops Really Work? by Perry J. Kaufman
Item# V43C04_946KAUF
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Do Stops Really Work? by Perry J. Kaufman

Whether to use stop orders is a fundamental question for trade management. Here, we present a test comparing different stop-loss types and exit methods. So how do they compare?

The stop-loss has a long history in trading. It is one of the first things I learned for controlling risk. “Don’t lose more than 1% on a trade.” Later it was “don’t turn a profit into a loss.” How do you do that? Generally, by placing a stop-loss order ...




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