Don't Use A Stop Loss - Do This Instead

In this video, we dive into one of the most prevalent myths in the stock market: the stop-loss. While it's often recommended to always use a stop-loss to control risk, our backtests show that it can actually make a strategy perform worse. We explore the alternatives to stop-losses and show you how to both increase returns and lower drawdowns without relying on them.

We begin by looking at the implications of using a stop-loss and why it doesn't always work as intended. We then provide examples and charts to illustrate our point, and offer alternatives to stop-losses, such as diversification and varying position sizes.

We also showcase a backtested strategy on SPY and demonstrate how adding more strategies can help improve returns and lower drawdowns. We reveal the trading statistics of the strategy, and how adding new strategies can improve the results.

We then present the annual returns of the combined strategies, showing how diversification can smooth returns and lead to better performance during market downturns.

Please note that we don't reveal the strategies used in this video, as they are part of our own trading arsenal. However, we encourage you to visit our website, where we share hundreds of other strategies for different asset classes.

Don't miss this opportunity to learn how to improve your trading game and effectively manage risk. Sit back, relax, and let us guide you through this informative and educational video. Don't forget to like and subscribe for more content like this!

#StopLoss #RiskManagement #StockMarket #TradingStrategies #Investing #Backtesting #Diversification #PortfolioManagement #BehavioralFinance #AssetAllocation #MarketVolatility #FinancialEducation #TradingTips #InvestmentTips #InvestmentStrategies #Stocks #ETFs #AlternativeInvestments #FinancialPlanning #MarketInsights

Chapters
0:00 Do not use a stop loss
0:46 The Basics First
2:08 Stop Loss vs No Stop Loss
3:17 Example
3:43 Alternatives to Stop loss
5:04 Increase return and reduce drawdown
5:18 Statistics
5:40 We add complementary Systems
5:52 Equity Curve Result
6:38 Annual returns

You can read more about our ideas about stop loss here:
https://www.quantifiedstrategies.com/stop-loss-pros-and-cons

TWITTER
https://bit.ly/Twitter_QS

INSTAGRAM
https://bit.ly/Instagram_QS

NEWSLETTER - QUANTIFIED STRATEGIES
30 000+ Traders read our free newsletter about trading strategies.
Sign up: https://bit.ly/substack_QS