What a stupid study

[wxytrader]

An uncle of mine, who is no longer around, was a bit of a story teller - of the true kind - and when talking of cars loved to mention an acquaintance of his who bragged about having only one of two Maserati Quattroporte's sold in Connecticut that year. It was forever in the shop with electrical problems. Unc said, gee I wonder why only two were sold lol

Oh I actually have a car where it's the only one in Canada. I think... there used to be one in Quebec but got sold.

 

[SunTrader]

Oh I actually have a car where it's the only one in Canada. I think... there used to be one in Quebec but got sold.

Lucky you hehe

 

[benjamincohen177]

Brokers in the back rubbing their hands together after watching this type of content.

 

[deaddog]

Oh I actually have a car where it's the only one in Canada. I think... there used to be one in Quebec but got sold.

Where are you? Maybe one of us could drop by and take a look

 

[taowave]

Dont be suprised if its a vintage Pacer or Gremlin..

He strikes me as an AMC sort of fellow

Where are you? Maybe one of us could drop by and take a look

 

[wxytrader]

Brokers in the back rubbing their hands together after watching this type of content.

Why would a broker like me? I don't spend a lot in fees, and I don't get pushed out of positions.

 

[charlotte_daily]

You almost lost me at the stop loss and gambling thing, but you had me back with the example in the end, nice one. I actually agree.

 

[Actuarial_Fun]

View attachment 337154


If
BUY and HOLD with no STOP and
BUY more and HOLD with no STOP and
BUY even more and HOLD with no STOP

works for you, then congrats to you.

You have found the holy grail !!!

More often than not this doesn't happen though. You are stating that in a small % of incidences you will lose substantial amounts more than you would have profited if your limit hit on the upside. That's true, but most often this isnt the case.

Stop losses are effective because they reduce your risk of ruin, not because for any given trade they are necessarily more profitable. Meaning, your profile over 1 million scenarios is likely hurt from stops, BUT as we can't average 1 million scenarios stop losses make sense for those times the above graph plays out.

I'm not disagreeing with you, just making the point that stop losses don't necessarily increase overall profits just reduce our risk in situations like you highlight above.

 

[wxytrader]

More often than not this doesn't happen though. You are stating that in a small % of incidences you will lose substantial amounts more than you would have profited if your limit hit on the upside. That's true, but most often this isnt the case.

Stop losses are effective because they reduce your risk of ruin, not because for any given trade they are necessarily more profitable. Meaning, your profile over 1 million scenarios is likely hurt from stops, BUT as we can't average 1 million scenarios stop losses make sense for those times the above graph plays out.

I'm not disagreeing with you, just making the point that stop losses don't necessarily increase overall profits just reduce our risk in situations like you highlight above.

Stop losses is gambling. You have placed an order to buy a stock that you have no interest in owning. It basically boils down to that. All the day traders getting in and out of trades racking up losses and fees could be done with one swing trade. The PDT is a good thing because it saves you from yourselves.

 

[taowave]

Instead of trolling with zero substance,why dont you run a backtest?

Present something with some performance,risk reward, metrics.

You arent here to replace Quanto

Stop losses is gambling. You have placed an order to buy a stock that you have no interest in owning. It basically boils down to that. All the day traders getting in and out of trades racking up losses and fees could be done with one swing trade. The PDT is a good thing because it saves you from yourselves.