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When should I close a position based on one of your indicators?

December 21, 2012, 12:00 PM Przemysław Radomski , CFA

The short-term gold stock indicator has no stop-loss level. How should I interpret it? What if the underlying instrument keeps going down for a number of days? When should I get out?

It depends on an indicator - all indicators are accompanied not only by a stop-loss suggestion but also by the suggested holding period. If that was 2 weeks then you close the position 2 weeks after the signal is seen - even if the position is not profitable.

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