Affinity Consulting Group

What is Stop Loss?

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Affinity Consulting Group

 

The performance of the selected funds is monitored daily and if a fund drops by more than a predetermined amount, Lanson Financial switches out of this fund and puts the investment into a fixed deposit fund to ensure that there are no further losses in value.

As only the best funds have been pre-selected, in most cases the fall is short lived and they continue with their consistent growth trend. After the market moves up by a predetermined amount, the investment is switched back into the fund. In this way major downturns can be avoided and when markets correct the fund can re-enter at a lower level.

The predetermined stop loss (exit) and start gain (entry) amounts vary from fund to fund depending on fund characteristics. In determining each fund's specific entry and exit points Lanson Financial has conducted significant research on existing and past daily data to elicit the underlying fund's specific characteristics. In this way optimum entry and exit indicators are established. Once established, each fund is periodically reviewed to monitor any change in characteristics.


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