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Portfolio123 » List all forums » Forum: Simulations and Portfolios » Thread: Trailing stop |
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Total posts in this thread: 3 |
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azouz
Advanced Member
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Hi everybody I need some help. I have a simulation that has the best return with a trailing stop -25% Yesterday, a stock in the portfolio of this simulation droped -27% (in 2 weeks) from his highest. I sold him, but today the stock gain 24%. So it was much better if i waited for the rebalance. Does some one experiments using trailing stop weekly,daily or intra-day and who is better ? |
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BJS
Advanced Member
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Ouch! Those hurt. It happens to all us at one time or another. Those things happen every now and then, and I don't know if there's much you can do about it. It could have just as easily hit the trailing stop on a Friday, then bounced 24% on the next Monday. In the long run, I think it's best to sell right away when the stop has been triggered. If the stop is triggered on a Tuesday, it might fall another 20% before the next rebalance. Did this bounce happen because of news, or an earnings release? Sometimes it helps to pay attention of when earnings are due to be released. If a stock runs up a lot right before earnings, you might want to be prepared to sell when the news comes out. Or if the price has dropped right before earnings, and it's a highly ranked stock, it might get a bounce when good news comes out. Keep plugging away. Overall the system will work. Brian |
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azouz
Advanced Member
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Hi Brian, The simulation is tested with a trailing stop to be checked on friday, i think if we can simulate a trailing stop daily, so result of simulation will be greatly changed. When i sell the stock, volume was normal. When it gained +20% volume was normal. and there is no news for the company during these periods. Thats why i was not sure about selling it. |
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