I just want to give you a simple example.
Let's assume that you buy 100 shares of A stock at $1k.
But this stock sank about 10% since.
After the stock hit the true bottom, the stock recovered back to where it was at $1k.

If you were holding 100 shares whole time during the above scenario, you would make break even.
But you definitely lost your Time Value.

Please see the table below for LRHR Way.


You set the stop at 1% for the half of total shares.
Every 1% down, you stop out and book the loss.
Every skip 2% down, you buy back the shares that you sold.
By the time, the stock lost about 10%, your actual loss is about $2400 from half sale transactions.
But when the stock recovers back to $1k, the other half that you were holding whole time is break even.
So your actual net gain would be:
($1000 x 50 shares) - ($904.4 x 50 shares) - $2,402.46 = $4,780 - $2,402 = $2,378

 So by the time the stock recovered back, you actually gained 2.4% rather than Zero.

Above example shows 5 level down(Sell and buy) but I usually do not go that far.
I mostly go down up to 3 levels and the interval's about 2% rather than 1%.
And I use this method usually when I decide to go Long for the particular stock.