Stop Losses

It is not possible to add a stop loss or a limit to an Investment Idea.

This is for two reasons:

• Having a stop/limit price does not guarantee that a real position would be executed at that price.

• The responsibility for the communication at which an Investment Idea of any type should be opened or closed rests with the strategy creator, without interpretation by any other third party

A real example of why a stop doesn't guarantee execution:

You have an open long trade in stock, "AAAA", opened at a real-time market price of $100, with a stop at $95. Company earnings are announced after market hours, resulting in a collapse of the stock price to $50 when the market opens the next morning. The first real-time market price at which the trade can be closed out is $50, not $95. The stop price would indicate a loss of only 5%, but the true performance of the trade is a loss of 50%.

Solution

• Algo/Manual trigger - when the stop or limit is hit, this triggers the creation of an Investment Idea as any other type of trade would

• Proof of Trade - when a position stop or limit is hit, this also triggers the creation of an Investment Idea as any other type of trade would