Probably i should put out preliminarly a sort of disclaimer, saying that my views do not represent the majority
of quants and strategists
)(So don't take my opinions as "standard" approaches)
I think i have explained with some detail in my threads. I will summarize here some concept.
First of all, i consider time irrelevant. My <b>"clock" is given by price movement</b>.
So "medium" is not respect to time elapsed, but to price variation.
Any bot needs to take "decisions". And, in my case, the decisions are "spaced" by price variation alone. Time is irrelevant.
A price could move 20 ticks in a minute or 2 ticks in a day. I simply don't care about time.
About "flattening position", i don't. But in case one wants to, at any cost (margin reason or whatever), there are 2 main cases:
1. You get flat. Restarting a new game next session.
2. You get flat. Resuming the previous game (clearly taking the gaps).
As far as i know 2) is still ok and works, if the overall strategy is profitable.
1) will never work and will be a 0 profit game in the long run (even if the underlying strategy is profitable).
[just my experience, clearly, not an absolute thruth
]Tom