Time stops: exiting trades that simply do nothing

[Shadow Trader]

Most traders think about price stops and targets but ignore time. A setup that is supposed to produce a quick reaction after a sweep and structure break but instead drifts sideways for hours has lost much of its edge, even if the stop has not been hit. The reason is that the original catalyst, the liquidity grab and displacement, has faded, and new information may have entered the market. I use a time stop based on the timeframe. For an M15 entry, if price has not moved at least half way to the target within, say, eight to twelve candles, I close the trade or reduce it, depending on the structure. I determined these numbers by reviewing my past trades and noticing that those that worked usually moved quickly, while those that lingered mostly ended in small losses or breakeven stops. You can do the same analysis. Look at how long your winners typically take to reach one R, and set a time limit slightly beyond that. It frees up capital and attention for better opportunities.

[FXS HongKong Scalper]

I use a candle count too: if a scalp on M5 has not reached 0.5R within six candles, I close it. Checking my old trades, the ones that sat flat for that long ended as full losers more often than winners. The rule felt like leaving money on the table at first, but the equity curve got smoother within a month.