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Time-Based Override

Force exit positions held too long at a loss. Prevent bag holding and free up capital for better opportunities.

What is Time Override?

Safety Exit Strategy

Time override is a safety exit strategy that automatically closes positions that have been held for too long while at a loss. It prevents you from becoming a "bag holder" waiting endlessly for a recovery that may never come.

In Simple Terms: You buy a token at $0.10 and it drops to $0.08 (-20% loss). After holding for 24 hours with no recovery, time override kicks in and sells the position automatically.

How It Works

Execution Logic

1

Position Age Tracking

System tracks how long each position has been open (time since first entry)

2

Duration Check

Every check cycle, compare position age vs. configured duration threshold (e.g., 24 hours)

3

Loss Verification

If duration exceeded, check if position loss exceeds threshold (e.g., -20%)

Example Scenario:

• Entry: $0.10 at 12:00 PM on Day 1

• Settings: 24h duration threshold, -20% loss threshold

• Current Time: 1:00 PM on Day 2 (25 hours elapsed)

• Current Price: $0.075 (-25% loss)

⚠ Time override triggered: Duration >24h AND loss >20%

Critical Distinction: Time override only triggers when BOTH conditions are met (duration exceeded AND loss exceeded). This means:
  • • Profitable position held 48 hours → No exit (not at loss)
  • • Position at -30% loss held 12 hours → No exit (duration not met)
  • • Position at -25% loss held 30 hours → Exit triggered (both conditions met)

Configuration

Trader Settings

trader.time_override_duration_hours

number

Maximum hours to hold a position before considering time override.

trader.time_override_loss_threshold_pct

number

Minimum loss percentage required to trigger time override.

Setting Recommendations

Aggressive

Duration: 12 hours

Quick exit for day trading

Loss: -15%

Lower tolerance for losses

Balanced

Duration: 24 hours

Standard overnight hold

Loss: -20%

Reasonable loss tolerance

Conservative

Duration: 48-72 hours

Give more time to recover

Loss: -30%

Higher loss tolerance

Primary Use Cases

Bag Holder Prevention

Stop holding losing positions indefinitely. Time override forces you to accept the loss and move on.

Capital Efficiency

Free up SOL locked in dead positions. Redeploy capital into new opportunities with better potential.

Portfolio Hygiene

Keep your portfolio clean by automatically removing losers. Prevents portfolio from filling with dead weight.

Emotional Discipline

Remove emotional attachment to losing positions. System forces the decision so you don't have to.

Pros & Cons

Advantages

  • Prevents Bag Holding: Won't hold losers forever
  • Frees Capital: SOL available for better opportunities
  • Removes Emotion: System makes hard decisions
  • Portfolio Health: Keeps portfolio clean
  • Protects Profits: Won't exit profitable long holds

Limitations

  • May Exit Too Early: Token could recover after exit
  • Realizes Loss: Turns paper loss into actual loss
  • Timing Risk: May exit right before recovery
  • Not for All Strategies: Bad for buy-and-hold long term
  • Requires Tuning: Need right duration/loss combo

Best Practices

Do's

  • Use alongside trailing stop (one for winners, one for losers)
  • Set duration based on your trading timeframe
  • Review exit history to optimize thresholds
  • Use tighter settings for day trading
  • Track how often it triggers (should be 10-20% of trades)

Don'ts

  • Don't set duration too short (<6 hours for most styles)
  • Don't set loss threshold too tight (<-10%)
  • Don't rely on it as your only stop loss
  • Don't manually override when it triggers (trust the system)
  • Don't use for long-term buy-and-hold positions