It may help in case of a black Swan event for the whole market or for a single company. But you should set the stop loss limit quite far away from the actual price. I would recommend at least 10% as many of the stocks selected by the “leader” sub-strategy have been very volatile and even a 10% stop loss would have sold many stocks which would have recovered only days later.
Thank you Frank. Logic would suggest that a 10% stop loss would have avoided Nasdaq100’s maximum drawdown of 30%. Is there a way in QT514 to apply a stop loss to the substrategies to test the theory? Thanks