A.I.M. Users Bulletin Board

[The Grabber]

Re: Stop Loss

With respect to mitigating loss via a stop loss strategy...In theory that's part of the function of cash reserve, i.e., to limit one's loss by running out of cash, so that your total potential amount at risk is already known.

True enough, but if that potential loss could also be reduced, then why not?

having a preset loss limit so that you keep some cash reserve to use as a seed in another program may keep you in the game longer overall. Which wouldn't be a bad thing.

That's what I think too but haven't given a lot of thought to using some of that cash to seed a new program. But it makes sense.

It's making the judgment call that becomes the difficult part. But then, that's always the case, no matter what "system" one may use.

That is why a systematic use of the W%r is important I think. I'd rather not have emotion enter into it.