I studied all possible ways of stop loss limits, and the conclusion is, that whatever you do, it lowers the return of the strategies. The simple reason is, that you have a lot of up and down spikes during each month. Most of them can be considered as pure noise. They have nothing to do with the general trend of these ETFs, however they are strong enough to trigger the stop loss limits.
But once you sold, what can you do then? Reinvest in the ETF which is best at this moment?
If you do this, most of the time you realize a loss by selling low and you buy back high. This is the typical “sell low, buy high” strategy which many inexperienced investors are using.
The use of stop loss limits may be good for trading highly volatile single stocks, but it is the worst thing to use, if you trade ETFs which follow longer lasting economic cycles.
