The only "absolut-ism "of the market is there is NO absolutism which puts a serious dent in the OP's opening statement..... I would futher counter the OP's logic by asking if he blindly reverses his position upon liquidation.Considering that he is 100% sure that it is optimal to liquidate 100% upon a target/signal,it would imply that one should reverse direction at that point.
You have just stated that Mr Quant is not using targets therefore the answer is very simple since it is how I do the bulk of my trading. -- He stays in the trade until the previous reaction low stops him out. He stays in with full position. --Really quite simple--Succesful trading is.
Vol, the discussion of whether position or day trading is better is not the subject of this thread. It's a great discussion, but is not relevant within these margins.
I didn't used to think so, but now I do. You should always be in the market and the only time you would take your money off the table is when you think there is a reversal--otherwise why take any off?
When I was a kid my grandma always told me if someone comes around passing out cookies to take some before they are all gone...