A simple computational model for analyzing the properties of stop-loss, take-profit, and price breakout trading strategies
Stop-loss, take profit and price breakout strategies, though in some ways theoretically unattractive, are nonetheless popular with traders. We describe and illustrate a simple, fast, flexible and practical discrete time computational model for performing probabilistic analyses of the risks, rewards and tradeoffs associated such strategies.
stop-loss orders profit targets planning horizons trailing stop strategies