What is the impact of such one stock on the overall PF? If the profit that we lose by not applying discretion is not substantial in absolute terms, then I guess, we can continue with our system; more so if such occurrences are common but don’t have any material impact on the overall return, say 3 in 20 stocks. But, if such losses seem big enough, then we can apply discretion using our experience, intuition and what we can see when we sell. Although, we have to accept and welcome the possibility of the sold stocks getting back up and moving higher. Until the system becomes robust enough for us to depend on it, discretion is not bad per se, more so when we are booking a profit.
And, if the system can provide with many such positions, a few missed profits or booked early profits would not make any difference.
Jim Simons wanted to use discretion, so no problem, I guess 
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