Stop-loss Rule


As a safeguard, we use stop losses. If our chosen fund starts dropping -- it can happen; after all, this is a game of probabilities -- we'll sell it if it loses N percent or more from the purchase price, even if it means getting hit with the 0.75% early-redemption penalty. Thus, you may get a new signal from us even if the month has not passed. We concluded from our historical back-testing that N should be between 5% and 9%, but it depends on the fund's volatility.

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