Target Time

Example of Target Time Trajectory

The Target Time trajectory is designed for traders who want to execute orders around a specific future event. It follows a time-based execution approach, concentrating trading activity at a designated moment, providing precise control over execution timing.

How It Works

• Traders configure two parameters:

  • Target Time (UTC) – The point when the highest concentration of trading will occur.

  • Interval (minutes) – Defines the total duration of the trade, distributing execution evenly around the target time.

• The engine follows a normal distribution for execution:

  • The mean is the target time.

  • The standard deviation equals 10% of the total duration.

  • 68% of the order is executed within the central 20% of the interval.

When to Use Target Time

• Event-Driven Trading – Ideal for executing trades around scheduled events, such as economic reports or earnings releases.

• Precise Execution Timing – Best when the majority of trading must occur at a specific time.

• Controlled Risk Exposure – Helps manage market exposure by concentrating execution within a defined window.

Target Time Limitations

• Sensitivity to Market Volatility – Unexpected price movements around the target time may impact execution quality.

• Requires Accurate Timing – Misjudging the event’s impact or timing could lead to suboptimal results.

• Limited Flexibility – The strategy does not adapt in real-time to market changes outside the set execution window.

This trajectory is ideal for traders needing precise execution control around time-sensitive market events while managing risk exposure efficiently.