Your "trend" is my "regime".
If your beta + momentum (aka "long only momentum") on average show max losses of 35% and an annualized std of 25% then you need to analyze the volatility range within trends to determine where you would place your stop. E.g. the price range might fluctuate, on average 15% while still being on the same trend, and when it exceeded it typically went on to lose 35% with recovery taking 1yr. This tells you to place stops at 15% of your recent high. You will never be 100% right.
You can do that, but it is a trading cost. You should compare your realized returns with the hypothetical returns of a buy and hold on the names you bought previously. E.g. compare returns on a monthly basis (what did I actually do vs buy and hold on things I bought).
Yeah, I said earlier that for small traders, a stop loss is fine. When you are trading size, your position might be multiples of the daily average volume. You cannot use a stop loss order to exit from a position when that's the case.
Lol 57% profit annually.
Not too sure that Overnight is trading that kind of size, I may be wrong, but somehow...
My point was that you don't need a stop loss. If a stop loss is your risk management strategy, it is not enough. I don't know what Overnight does to manage risk, but that he does not use a stop loss doesn't make his strategy any less valid.
Lol 57% profit annually.
Using stats is helpful though, but that guys assumptions are just whack.
For a retail trader you do not recommend using stops? Check.
I'm assuming your reading comprehension is average, so why would you choose to interpret what I said that way? You made the assertion that trading without a stop loss is absurd, I was pointing out that is, in fact, not so.
I did?