# Time-Based Profit Reduction

Instead of waiting indefinitely for the original profit target to be reached, the EA slowly lowers its expectations over time.\
This helps close trades more efficiently when the market is slow, ranging, or moving without clear direction.

{% hint style="info" %}

#### How the Feature Works

When a trade is opened:

* The EA starts with the normal profit target
* After a defined time interval, the profit target is reduced
* This reduction repeats at every time step until the trade closes

The goal is to **encourage earlier exits** when price action does not support the original target.
{% endhint %}

{% hint style="info" %}

#### Reduction Step in Minutes

This setting defines **how often the profit target is reduced**.

If this value is set to zero:

* Time-Based Profit Reduction is disabled
* The profit target never changes over time

If set to a positive number:

* The EA reduces the profit target after each time interval
* The countdown starts from the moment the trade is opened
  {% endhint %}

{% hint style="info" %}

## **Simple Example**

If the step is set to 30 minutes:

* After 30 minutes, the profit target is reduced once
* After 60 minutes, it is reduced again
* This continues until the trade closes

Shorter steps:

* Reduce profit targets more aggressively
* Close trades faster
* May exit with smaller profits

Longer steps:

* Reduce profit targets more slowly
* Give trades more time to develop
  {% endhint %}

{% hint style="info" %}

#### Reduction Type

This setting defines **how the profit target is reduced**.

You can choose between:

* Percentage based reduction
* Reduction in account currency

Percentage:

* Reduces the remaining profit target by a percentage
* Automatically adapts to different trade sizes

Account currency:

* Reduces the profit target by a fixed monetary amount
* Provides precise control over profit decay
  {% endhint %}

{% hint style="info" %}

#### Reduction Value per Step

This value defines **how much the profit target is reduced at each time step**.

If this value is set to zero:

* No reduction is applied
* The feature remains inactive even if the time step is set

Higher values:

* Reduce profit targets faster
* Increase the chance of early exits
* May significantly lower average profit per trade

Lower values:

* Apply gentle reductions
* Preserve more of the original target
* Allow trades more time to reach higher profits
  {% endhint %}

{% hint style="info" %}

#### Combined Behavior Example

Assume:

* Time step is 20 minutes
* Reduction type is percentage
* Reduction value is 10 percent

Behavior:

* Trade opens with its normal profit target
* After 20 minutes, the target is reduced by 10 percent
* After 40 minutes, it is reduced again by 10 percent of the remaining target
* This continues until price reaches the adjusted target
  {% endhint %}

{% hint style="success" %}

#### Why Use Time-Based Profit Reduction

This feature can help:

* Reduce long-running trades
* Improve trade turnover in slow markets
* Avoid capital being locked in stagnant positions
* Adapt exits to changing market conditions
  {% endhint %}

{% hint style="danger" %}

#### When NOT to Use It

This feature may not be suitable if:

* You prefer fixed, unchanged profit targets
* You trade only strong trending conditions
* You already rely heavily on trailing stops
* You want to maximize profit per trade regardless of duration
  {% endhint %}

{% hint style="warning" %}

#### Important Safety Notes

* Aggressive reductions can lower total profitability
* Very short time steps may cause premature exits
* Always consider how this feature interacts with trailing stops and break-even logic
  {% endhint %}

Time-Based Profit Reduction dynamically adjusts profit targets based on trade duration.\
It is designed to improve exits during slow or unfavorable conditions but must be configured carefully to avoid exiting too early.

Always test this feature on a demo account before enabling it on a live account.

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{% content-ref url="/spaces/ShpN5GtM9y91jd4mhvkb/pages/umSxbCWnVyIEBzC15uOP" %}
[Delay before reduction starts in minutes](/smartchoise-manual/options/time-based-profit-reduction/delay-before-reduction-starts-in-minutes.md)
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[Reduction Type](/smartchoise-manual/options/time-based-profit-reduction/reduction-type.md)
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{% content-ref url="/spaces/ShpN5GtM9y91jd4mhvkb/pages/VKxVfcYa4eP0sDA3kGsr" %}
[Reduction step in minutes](/smartchoise-manual/options/time-based-profit-reduction/reduction-step-in-minutes.md)
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[Reduction Value per Step](/smartchoise-manual/options/time-based-profit-reduction/reduction-value-per-step.md)
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---

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