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Robinhood offers a trailing stop approach supports the simplest approach one can take but definitely the least effective. Either you are going to set a trailing stop percentage, which is a completely random value and “unintelligent”, or you are going to have set your own stop loss price and then the question becomes, what should that be and when should I change it? With this “old-fashioned” approach, the percentage reflects nothing more then a price movement variable. Does that represent “risk”? No. Plus, that type of trailing approach only moves upward. But how many stocks do you know that move straight up? Isn’t the goal to “let winners run” and “cut lossses”? To achieve that, you need to have a stop approach that is much more intelligent. That knows how to to adjust both up and down as otherwise you get stopped out too soon. Plus, with a trailing percentage, should you use a 5%, 8%, 10%, 12%, 15%, 20%, 25% or some other value? And should you keep it at the same level or if you are going to change it , then to what and based on what criteria?
These are not easy questions to answer. It can take years of real market experience, experimenting with different approaches, and spending endless hours studying the thousands of technical analysis methods out there to be utilized. And then you would need to figure out which combination of studies to use and even further – how to tweak their variables.
That’s why SmartStops was created. Retired WallStreet experienced professionals wanted to see the DIY’er or retail investor have the same technological edge that the Wall Street institutions utilized. They developed a Smart(R) traliing stop approach that is built off of over four decades of actual wall street experience and continues to evolve today with machine learning / artificial intelligence. Having launched in 2008 , Smartstops has been protecting investors for over a decade. And again in this 2020 COVID-led market drop as well.
So don’t sell yourself short. Get yourself a Smart(R) stop plan..
ROBINHOOD’s Trailing Stop screenshots;
How SMARTSTOPS is so much more then an unintelligent percent trailing stop. Stop asking the question – what percent should I set my trailing stop at? Start asking, what smart trailing stop approach can I be using?
SmartStops vs. Trailing Stops: