Today I took partial profits on an existing long trade that I had kept open since early July. Trend followers as a rule stay in a full position until such point in time that the trend has been exhausted, and a trailing stop hit.
As I discuss in my e-book, however, there are occasions where I do take a portion of profits off the table. In this particular case, there is an earnings release due in a couple of days, and with a sharp rise in the price in recent days, my trailing stop was being left far behind. This had the effect of significantly increasing the open risk on the trade. I talk more about this here.
It helped that, when I closed off part of that trade today, the profit on that one position was +31R - easily my most profitable trade in the last two or three years. Time will tell whether the decision was the correct one, however in my opinion it was the prudent one. And I still have half the original position open, so if prices continues on its merry way then I will still be making money.
My latest cash equity graph, based on my exact trades forming the performance statistics here, is shown below.
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