Annualized Returns of Trading Strategies for GGP

These figures represent the annualized yields from several strategies for GGP, conducted mechanically for 10 years. The top lines of the table show results from several variations on the classic Buy and Hold strategy, for which the concept of stops does not apply. Although this venerable strategy is frequently praised, in the most simple form, it failed for this company, with a loss of -6.00 %.

The most basic flavor of the Buy and Hold strategy is tested by buying on every day of the period, then holding all the way to the present date. Many people practice some of the more realistic versions of Buy and Hold, for example, Momentum Investors might buy on rising prices and then hold. A speculator with a bit of sophistication might buy on dipping prices, while a technician might wait for technical signals to buy and then hold.

Generally, we have found the Buy-On-Dip policy to offer better returns than the Buy-On-Rise. That is true in this case, indicating some of the benefit of betting against the crowd when investing. Both strategies offer improvement over the unadorned Buy and Hold. Using technical indicators to buy and then hold, improves on the simple Buy and Hold strategy, but is still not the best.

Strategies lacking a stop-loss policy are too dangerous, given that every stock, sooner or later, will become worthless.

From the Report Dated 10/7/2009: At least from the standpoint of a single company strategy, the best setting over the past 10 years has been -2 percent for GGP when adjusting stops weekly. However, setting stops this close can result in excess transactions. The best stop wider than 10 percent is -25 percent. This has historically produced a yield during holding periods that annualizes to 50.00 %.

How to set sliding stop limits for General Growth Properties, Inc:

Stop loss limit orders would appear to be almost always desirable. But where to set the stop limit is controversial. Setting to limit too low may allow for too great a loss. But setting the limit too high may cause the trade to "stop out" prematurely, perhaps missing a rally and also incurring an unwelcome brokerage fee.

Two issues need to be settled in arriving at a stop limit strategy. The first is to determine the price to position the stop loss at a percentage below the buy-in price. The second is to determine a strategy for raising or sliding the stop to lock in gains without undue risk of prematurely "stopping out" on some insignificant dip in price.

Technical Buy Signals and Trailing Stop-loss