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Speaking for myself, I like this approach.I think it's easy in hindsight when the market is running up to think that it is best to just hold. What I particularly like about this approach is:1) exit when the momentum is lagging2) get in new stocks when momentum is identified. I.e. Good opportunity cost of limited capital.Like you said, we wouldn't have been able to hold them all during the run up and who is to say which ones we would have held.It is a fair question in terms of what is the optimal stop in a particular market. This exercise is certainly on the tight side.I'd love to hear Tech's thoughts on this also.Having said that VRL was probably trailed less aggressively than I would have done so and it was the most profitable, so letting this one run a bit was beneficial. However it did provide a period of consolidation that may have allowed re entry.Some interesting considerations in your post.
Speaking for myself, I like this approach.
I think it's easy in hindsight when the market is running up to think that it is best to just hold. What I particularly like about this approach is:
1) exit when the momentum is lagging
2) get in new stocks when momentum is identified. I.e. Good opportunity cost of limited capital.
Like you said, we wouldn't have been able to hold them all during the run up and who is to say which ones we would have held.
It is a fair question in terms of what is the optimal stop in a particular market. This exercise is certainly on the tight side.
I'd love to hear Tech's thoughts on this also.
Having said that VRL was probably trailed less aggressively than I would have done so and it was the most profitable, so letting this one run a bit was beneficial. However it did provide a period of consolidation that may have allowed re entry.
Some interesting considerations in your post.
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