The Best Stop Loss Strategy (Backtested)

Learn what a stop loss is and where to optimally place your stop loss. I backtest using ten years of data on the SPY, Sector ETFs, and S&P500 constituents to determine best stop loss placement. ✉️ Learn the secrets of legendary traders and investors: https://bit.ly/4aCna7i 🔗 Follow along: https://analyzingalpha.com/blog/stop-loss-for-stocks 0:00 Introduction 0:37 What is a stop loss? 0:57 How does a stop loss order work? 1:45 Stop loss benefits & drawbacks 2:34 Stop losses to protect profits 3:58 Backtest results 4:20 S&P 500 results 6:12 Sector stop loss results 6:41 Equity stop loss results 7:10 Equity atr stop loss results 7:23 Backtest summary 9:43 Optimal stop loss