Is stop-loss needed since Ctabs provides commentary to exit positions?

It is always prudent to have a stop-loss order on your position. The only question remains - what stop-loss point should you use?

Examine your stock in question to see if the Ctabs action commentary typically prevents you from taking losses beyond your stop-loss tolerance. If so, then you have a suitable stop-loss point that gets you out at your tolerance threshold without being too restrictive such that you get "stopped out" due to volatility. Then the usual Ctabs action commentary should guide you to successful trend following where you may well sell out before hitting the stop-loss. And if there is a sudden large drop in the stock price, your stop-loss covers you.

For example, suppose you followed a Ctabs "buy" action commentary and your stop-loss tolerance is 10%. Take a historical look to see if the stock has price action such that it swings quickly down 10% before Ctabs candlestick analysis has had a chance to issue a "sell" action commentary to get you out of the position. If your stock does not typically bear 10% drops, then your stop-loss point is good to cover an unusual and sudden drop while allowing you to follow the Ctabs action commentary for successful trend following.

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