| Article ID: | iaor20063434 |
| Country: | United Kingdom |
| Volume: | 33 |
| Issue: | 1 |
| Start Page Number: | 32 |
| End Page Number: | 42 |
| Publication Date: | Jan 2006 |
| Journal: | Computers and Operations Research |
| Authors: | Warburton Art, Zhang Zhe George |
| Keywords: | financial, investment |
Stop-loss, take profit and price breakout strategies, though in some ways theoretically unattractive, are nonetheless popular with traders. We describe and illustrate a simple, fast, flexible and practical discrete time computational model for performing probabilistic analyses of the risks, rewards and tradeoffs associated with such strategies.