I have all the formulas (for my sell stops) on my spreadsheet so the NOW part updates itself everyday giving me a new GET OUT @ number.
My question and I think I already know the answer is:
Each year should I start the HIGH and LOW’s anew? Or should I just keep them running?
I would think just to keep them running.
Let me make it clear again. Just because we enter a new year does not mean you have to adjust the high points for your sell stops.
The only high price of any importance is the one your fund/ETF has made since you purchased it. While this may coincide with a yearly high, it does not have to.
For example, say you bought an ETF at 10.00. Since that purchase, the price may have gone to 11.00 before slipping back to, say 10.70. The yearly high may have been at 11.75, which does not matter to you at all. In this case, 11.00 becomes the price from which you calculate your trailing sell stop until that price is being taken out.
On a side note, tracking low points has no value when it comes to the use of a stop loss strategy.