This system has been stopping out of many trades over the past month. These trades would have been profitable had a looser stop been applied. BHH suggested that the best stop should be developed independently of the equity curve. Once the optimum stop has been identified, position-sizing would then be used to create the equity curve that [...]

Highlighted in a pleasing green hue is the Big Bamboo selection for Monday. I have included some recent studies below, for review.
Big Bamboo, Analysis of Trade Drawdowns
Big Bamboo, Refining Stop Strategies
Big Bamboo: The Esoteric Art of ATR Stops
In light of recent studies, the Big Bamboo will continue to use a 4% stop. However, I have [...]

The most prolific discussions generated by the tracking of the Big Bamboo Trading System have concerned the use of stops. We have discussed using larger percentage stops, Average True Range stops, and no stops at all. (Regarding the use of no stops at all: That is like not wearing underwear. It works well, until you get caught with your [...]

BHH over at his blog IBDindex has published some graphs of what happens when various percentage and ATR stops are used with the Big Bamboo system.
The study demonstrates how percentage and Average True Range stops affect Net Profit, Win%, Average Trade, and Profit Factor.
B’s post is here: Big Bamboo Stop Study
The value of using a multiple [...]