Good set of stats can help characterize typical day to day "uncontrollable loss" as Stevo calls it. For the Super duper omfg kinds of excitement oka black swan event, well... that can be uh, problematic. Steve Rhodes on Mastering Probability around minute 9:00 https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-18#post-5316221
Your "trend" is my "regime". If your beta + momentum (aka "long only momentum") on average show max losses of 35% and an annualized std of 25% then you need to analyze the volatility range within trends to determine where you would place your stop. E.g. the price range might fluctuate, on average 15% while still being on the same trend, and when it exceeded it typically went on to lose 35% with recovery taking 1yr. This tells you to place stops at 15% of your recent high. You will never be 100% right. You can do that, but it is a trading cost. You should compare your realized returns with the hypothetical returns of a buy and hold on the names you bought previously. E.g. compare returns on a monthly basis (what did I actually do vs buy and hold on things I bought). Yeah, I said earlier that for small traders, a stop loss is fine. When you are trading size, your position might be multiples of the daily average volume. You cannot use a stop loss order to exit from a position when that's the case.
My point was that you don't need a stop loss. If a stop loss is your risk management strategy, it is not enough. I don't know what Overnight does to manage risk, but that he does not use a stop loss doesn't make his strategy any less valid.
I know, it's hard to believe, right? but check it out... If you watch the vid, you'll note that those are from 1 years worth of actual trades. He sells a newsletter and entered the trades After each reco was made to his subscribers by email. He's ranked in multiple catagories of that pub that tracks Newsletter types and they have some kind of systematic approach as well. Timer's Digest, yeah, that's the one...slipped my mind for a sec there... https://www.masteringprobability.com/ I happened across a short segment of one of his shows that air 5 days a week, this was when he was into the process for a few months already, one of the callers asked about how that worked, so he spoke on how to submit his trades they had to be to sent to Timers Digest prior to entering the trade. What a pain in the ass!, lol. But hell, I guess if he's sending them to his subscribers anyway, then just copy to TD on the same email. Anyhoo, he kicked some behind during that year if TD and subscribers are to be believed.
For a retail trader you do not recommend using stops? Check. Same advice for retail day trader, as for retail 2 - 10 day holder, as for 2 - 10 week holder, as for 1-year, 5y, 20y?
I'm assuming your reading comprehension is average, so why would you choose to interpret what I said that way? You made the assertion that trading without a stop loss is absurd, I was pointing out that is, in fact, not so.