2
$\begingroup$

Does anyone know some bibliography about the problems or limitations of using Stop-Loss strategies in a portfolio?

Let me explain better: for example you can have a portfolio of 30 stocks from different securities and you can put a Stop-Loss Strategy over them, but what would happen if suddenly there is a crisis like the one of 2008? Does this strategy really help you to minimize your losses?

Thank you in advance your the help!

$\endgroup$
  • $\begingroup$ If you Google "stop loss SSRN" you will find a number of papers on this, but I don't know which are worth reading. It is a messy problem that has not been clarified AFAIK, a lot depends on the assumptions people make. $\endgroup$ – Alex C Nov 20 '19 at 2:44
0
$\begingroup$

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2895437

This paper may be helpful. Generally, this is not a simple problem.

| improve this answer | |
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.