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!

  • $\begingroup$ 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


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

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