Hi mitch1179, I am using Z9, which is a strategy from the same long-only „portfolio rotation“ class of strategies. I do not use any stop losses.

There are two reasons for that. First, I use the Z9 as it is designed from the authors, and it is designed without stop losses.

Second reason - my understanding of these strategies is, that there are two main edges, that are being exploited. One is the long-term upward bias of equities and bonds, so thats why it is the long-only strategy and why you have to stay in the market to exploit this edge.

And the other edge is that some assets from your Z8/Z9 portfolio have more chance to grow in the next 5-6 weeks, than the other ones. So, you exit a position, only if another asset is chosen by algorithm and you get a proposal to relocate your capital, close/reduce some current positions and open other ones instead. That is why you need to run the script in regular intervals, as suggested by algorithm.

That being said, it does not change the need that you understand the stock market drawdowns and their psychological and monetary impacts to your funds. Especially when you use margin (which by the way I do not). Best and easy way how to handle it and how to learn SIZING of your capital is to read books, like JCL‘s Black Book and Robot Wealth „Embrace The Mayhem“ . Or other books recommended in Zorro portal.

Just trying to help, form my experience, good luck ...