1. Stop losses seem to work [1]. Would it make sense to update your strategy accordingly -- even on indices?
2. Research from the Wharton School of the University of Pennsylvania [2] shows that the buy-and-hold returns of the 500 original firms outperformed the returns on the continually updated S&P 500 index. Could we push the low-stress model a step further and buy the content of current indices instead of the indices themselves?
1. Stop losses seem to work [1]. Would it make sense to update your strategy accordingly -- even on indices?
2. Research from the Wharton School of the University of Pennsylvania [2] shows that the buy-and-hold returns of the 500 original firms outperformed the returns on the continually updated S&P 500 index. Could we push the low-stress model a step further and buy the content of current indices instead of the indices themselves?
[1] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=968338
[2] https://rodneywhitecenter.wharton.upenn.edu/wp-content/uploa...