These stop loss rules are overparameterized, highly heuristic, and as you rightly point out, apply to a set of markets that likely do not represent the experience in global markets.
Using continuous price-based signals which naturally have a stop-loss like effect would remove the need for using separate stop loss rules and remove the path dependency
There are formal studies that demonstrate that IF the asset is mean reverting, then stop losses add value. But it requires the asset remain in the mean-reverting regime; also because of the path dependency I'd prefer not to use stop
That makes sense. If the asset dynamics are mean-reverting in a given time frame, you would be more likely to make money from a strategy that bets on mean reversion, rather than trending behavior. Unlike trend, which scales down positions naturally if formulated in a continuous manner, mean-reversion strategies can either stay in a losing trade for too long or worse yet, bet on their losses. In such a setup stoploss could be beneficial, either at the strategy level or at the individual market or even trade level.
These stop loss rules are overparameterized, highly heuristic, and as you rightly point out, apply to a set of markets that likely do not represent the experience in global markets.
Using continuous price-based signals which naturally have a stop-loss like effect would remove the need for using separate stop loss rules and remove the path dependency
There are formal studies that demonstrate that IF the asset is mean reverting, then stop losses add value. But it requires the asset remain in the mean-reverting regime; also because of the path dependency I'd prefer not to use stop
That makes sense. If the asset dynamics are mean-reverting in a given time frame, you would be more likely to make money from a strategy that bets on mean reversion, rather than trending behavior. Unlike trend, which scales down positions naturally if formulated in a continuous manner, mean-reversion strategies can either stay in a losing trade for too long or worse yet, bet on their losses. In such a setup stoploss could be beneficial, either at the strategy level or at the individual market or even trade level.