How do I implement a stop loss?

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How do I implement a stop loss?

posted

Seeking Help Risk Management

Hi everybody,

I am trying to implement a stop loss to this strategy. However, after looking on the documentation and on the forum, I am still not quite sure how I should go about it.
Should I store the buy (and sell) price in a variable and then check manually every day if the current price has risen above or fallen under my stop loss? Or should I just use a StopOrder type of order? (if that's the case I don't know how I would implement it)

I need your advice, thank you in advance!
D

1 response

Tentor Testivis

This post has an example with a trailing stop. It adresses an issue with stock splits and stops, which is the reason why I wouldn't recommend stop orders (in real life brokers often just cancel stop orders after splits).

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.