Time stop strategy

Hello all,

i searched for "time stop" and surprised that theres too little discussion about this. Or maybe i didnt search the right word. Personally i have been using time stops as well as price stop. Anyone else here using time stops. I exit my position due to time or price factor not being favorable to me. I personally think that time stops is really important. It improves the real R:R tremendously. My time stops basically forces me to close "stalling" losing position way before the SL got hit.

What do u guys think? I heard top trader paul tudor jones uses time stops as well.

Time stops are useful, but depends on the type of trading system IMO.

Time stops I think are best in the following systems:

 

1. News
2. Scalping
3. Counter Trending.

I've not incorporated them into my trading though I've heard of them. My problem is how to quantify "how long".

It occurred to me that time stops could enhance an existing system by analyzing how long positions are open under certain conditions. For instance you might discover that losers are open longer than winners. Furthermore you might discover that losers are generally open longer than X bars, yet winners are generally open for less than Y bars.

This sort of statistical analysis could be very fruitful.