Time Stop

[Aumkar]

Hello Guys

Can anyone tell what is "Time Stop" technique? Is it a kind of putting stop loss with respect to time?
How does it work?

 

[midita]

time stop?i have not learn that technique, but hope some one can help you

 

[MrGecko]

"Time stops" generally refer to exiting a position if it hasn't come so far onside after a set period of time.

Say, for example, I take a breakout trade. Here I am looking for a positive feedback loop (where buying causes more buying), so I say "if I am not onside in an hour's time, the positive feedback loop isn't there so I'm getting out".

 

[tomorton]

Don't stand next to varadarajan at parties, this is his best ice-breaker.

 

[pssonice]

the longer your pos. stays in the market wo any profit, the higher the probability

that your pos. will be caught by an unexpected event.

 

[MrGecko]

Don't stand next to varadarajan at parties, this is his best ice-breaker.

I wonder if his friends call him "Vaj"?

 

[anley]

Some traders use a "3 period rule".

So if you trade has not shown a decent profit after 3 periods, get out (small profit/loss) or tighten up your stop.

But what is '3 periods'?

If you're using an hourly chart - 3 hours

if a daily - 3 days

If a weekly chart - 3 weeks etc

The logic is simple. Most good trades will tend to go your way straight away.