Trailing Stops Interplay

Discussion of the Stock portion of the Permanent Portfolio

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MachineGhost
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Trailing Stops Interplay

Post by MachineGhost »

Has anyone investigated the interplay of using trailing stops on individual growth stocks and the LT bonds? 

It occured to me that as opposed to market timing which is a binary in and out decision, trailing stops are "selective" in being triggered.  Those stocks that have declined but not so much to hit their trailing stop would be hedged by the LT bonds as per usual.  But for those stocks that triggered and went to cash, the drag on the LT bonds would be reduced, perhaps enough to offset the lack of upside potential that LT bonds currently have.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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