The net effect of this early exit technique was that profits were reduced on the 11 early exits by about 0.6% per trade. Traders that are nervously sitting on winning positions may want to factor this information into their thinking when deciding whether to take partial or full profits at this point.
The Large Bars Down and Up Study from last night indicated that a pullback was likely within a few days. Whether the pullback comes before or after the CBI hits 3, I don’t know. If you’re sitting on healthy profits and not willing to wait through a pullback of potentially 2%+, then you may want to consider taking at least partial profits. It is not the mathematically optimal exit, but I find sometimes taking partial profits can help alleviate trade anxiety – allowing you to think more clearly and manage the rest of the trade more objectively. If the pullback happens to arrive before the CBI hits 3, then there is also the possibility of adding back to your position at a lower price.
Just some food for thought…