Interesting posting. -and thank you for doing so. Tightening stops can certainly change a system from losing to winning as well as letting winners mature and position sizing etc. ---Managing risk is the only variable that we can control as traders so it makes sense that prudent management of same is the edge.---Ishmael.
Well if you don’t have a defined real edge risk management can be your only edge. As to whether one can make decent profit from that alone it’s anyone’s guess.
Funny,what you guys call an "edge",I call a "given"... And it's not like we're talking about managing a vol book
I wish but no one wants to hire me. Once an amateur, always an amateur, nothing to do with money or profits.
@ironchef, what you could also do is to cut your dataset in eg 4 parts, and test how your optimized/curvefitted stoploss works out. That would make of a simplified version of k-fold cross validation, simpler, but better then not doing it. And pragmatic, for us, retail Btw since we seem to trade a bit in the same way, swing / portfolio managing using options, it should be good to exchange ideas, without giving away your hard work ofcourse. I do something similar perhaps, basically it’s derived from Muppets advice (theta/gamma)