Before revision:   In particular, we show that the optimality of the exit time of an interval (corresponding to the "cut-loss-or-stop-gain" strategy widely adopted in stock trading ) is endogenous for problems with convex distortion functions, including ones where distortion is absent. We also discuss economical interpretations of the results .
After revision:  In particular, we show that the optimality of the exit time of an interval (corresponding to the "cut-loss-or-stop-gain" strategy widely adopted in stock trading , including those of "buy and hold", "cut loss or take profit", "cut loss and let profit run" and "sell on a percentage of historical high" .