Hello: Is a 5% trailing stop trailing stop still recommended? I am a new
user of your model, but it seems kind of large considering how tame the market
DJIA has been this year.
The 5% value came from our optimization program that also determines the
long and short position setpoints. This is the value that gives the best rate
of return per unit of risk. The value you should use is the one that meets your
risk tolerance which may be more or less than the 5%. At times, I will suggest
reducing the stop percentage when it looks like the model may be too aggressive.