The Value of Stop-Loss Strategies

Exploring the Impact of Stop Losses on Performance

Hi there! It’s time for a new article. This one explores when and why stop-loss rules can be beneficial to investors.

Introduction

Stop-loss strategies have long been a subject of debate among investors and academics. This blog post explores key findings on stop-loss strategies to assess their potential value to investors. Evidence suggests that stop-loss rules can add value when applied to certain assets or strategies, increasing Sharpe ratios and mitigating drawdowns. Additionally, stop-loss rules may help investors overcome common behavioral biases.