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Hello Everyone, I'm electing to cover 1/2 of the open ES short that was taken on Wednesday for  the QE BTS.

Again, as I discussed already yesterday, the system did not exit because the trending hold condition kicked in. By turning trend/hold condition that system would have exited yesterday on the pure mean reversion. Generally my strategy is to exit 1/2 or lock in some gains after the mean reversion occurs just to be safe and lock in some gains, so that's what I'll do for the website. Cover 1/2 and keep the other 1/2 until the system finally exits.  You can do what fits your risk profile and tolerance. 

the attached image shows the QE 3 Short, the version on the left has the trend condition set to true and remains holding, while the version on the right has the trend condition set to false, therefore it exited on the mean reversion. We're 'splitting the difference' so to speak

Matt

Providing high quality market analysis with an emphasis on technicals education since 2003.

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