Decision Fatigue in Trading: When to Step Away

Research shows that the quality of our decisions degrades over time. Judges give harsher sentences late in the day. Doctors make more errors in afternoon hours. Traders are no different—and the stakes are high.

What is Decision Fatigue?

Every decision we make depletes a finite pool of mental resources. As this pool depletes:

Identifying Your Fatigue Pattern

Track these metrics across your trading day: 1. Win rate by hour 2. Average R by hour 3. Rule adherence by hour 4. Number of trades by hour

Most traders find a clear pattern: strong performance early, degradation after a certain point.

Strategies to Combat Fatigue

1. Define Your Trading Window

If your data shows performance drops after 2pm, make that a hard stop. No trades after 2pm, regardless of setups.

2. Take Structured Breaks

Every 90 minutes, take a 15-minute break. Step away from screens. This resets your mental resources.

3. Limit Daily Decisions

Pre-market, define:

This front-loads decisions when you're freshest.

4. Reduce Non-Trading Decisions

Use the same morning routine. Eat the same lunch. Wear the same "trading uniform." Every decision saved is resources preserved for trading.

Using Decision Fatigue Analytics

Practice—Process tracks your performance across time automatically. The Decision Fatigue dashboard shows:

Use this data to define—and stick to—your optimal trading window.