Stop Placement

  • August 29, 2000
  • Mark Boucher

Always let the market’s own price action determine where an open protective
stop (OPS) or trailing stop is placed by a specific rule. The investor should
not just randomly put an OPS at a level; that level should be chosen because
of the market’s own price action.

–Mark Boucher, from The Hedge Fund Edge (1999, John Wiley &
Sons, New York).

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