diff --git a/app/services/paper_trade_service.py b/app/services/paper_trade_service.py
index ed5c030..35133e3 100644
--- a/app/services/paper_trade_service.py
+++ b/app/services/paper_trade_service.py
@@ -441,22 +441,31 @@ async def list_trades(
     holding_sessions: dict[int, tuple[int, int]] = {}
     if policy["mode"] in ("time", "atr_trailing"):
         hold_days = int(policy["hold_days"])
-        for t, _ in rows:
-            if t.status != "open":
-                continue
-            held = int(
-                (
-                    await db.execute(
-                        select(func.count())
-                        .select_from(OHLCVRecord)
-                        .where(
-                            OHLCVRecord.ticker_id == t.ticker_id,
-                            OHLCVRecord.date > t.opened_at.date(),
-                        )
+        open_trades = [trade for trade, _ in rows if trade.status == "open"]
+        if open_trades:
+            ticker_ids = {trade.ticker_id for trade in open_trades}
+            earliest_opened = min(trade.opened_at.date() for trade in open_trades)
+            session_rows = (
+                await db.execute(
+                    select(OHLCVRecord.ticker_id, OHLCVRecord.date)
+                    .where(
+                        OHLCVRecord.ticker_id.in_(ticker_ids),
+                        OHLCVRecord.date > earliest_opened,
                     )
-                ).scalar_one()
-            )
-            holding_sessions[t.id] = (held, max(0, hold_days - held))
+                    .order_by(OHLCVRecord.ticker_id, OHLCVRecord.date)
+                )
+            ).all()
+            dates_by_ticker: dict[int, list[date]] = {}
+            for ticker_id, session_date in session_rows:
+                dates_by_ticker.setdefault(int(ticker_id), []).append(session_date)
+            for trade in open_trades:
+                dates = dates_by_ticker.get(trade.ticker_id, [])
+                held = len(dates) - bisect.bisect_right(
+                    dates, trade.opened_at.date()
+                )
+                # Do not clamp: a policy shortened below the current holding
+                # period must remain visible as overdue until the exit pass runs.
+                holding_sessions[trade.id] = (held, hold_days - held)
 
     trailing_info: dict[int, tuple[float, float | None]] = {}
     if policy["mode"] == "trailing":
diff --git a/frontend/src/components/dashboard/OpenTradesPanel.tsx b/frontend/src/components/dashboard/OpenTradesPanel.tsx
index 4862eba..0a70eea 100644
--- a/frontend/src/components/dashboard/OpenTradesPanel.tsx
+++ b/frontend/src/components/dashboard/OpenTradesPanel.tsx
@@ -25,16 +25,19 @@ function pnlColor(v: number): string {
 function maxHoldText(trade: PaperTrade, compact = false): string | null {
   const remaining = trade.sessions_remaining;
   if (remaining == null) return null;
-  if (remaining <= 0) return 'exits today';
-  if (compact) return `${remaining} ${remaining === 1 ? 'session' : 'sessions'} left`;
   const held = trade.sessions_held ?? 0;
+  if (remaining < 0) return compact ? 'past max hold' : `${held} held · past max hold`;
+  if (remaining === 0) return compact ? 'max hold reached' : `${held} held · max hold reached`;
+  if (compact) return `${remaining} ${remaining === 1 ? 'session' : 'sessions'} left`;
   return `${held} held · ${remaining} remaining`;
 }
 
 function maxHoldColor(trade: PaperTrade): string {
-  return trade.sessions_remaining != null && trade.sessions_remaining <= 5
-    ? 'text-amber-300'
-    : 'text-gray-400';
+  const remaining = trade.sessions_remaining;
+  if (remaining == null) return 'text-gray-400';
+  const holdDays = Math.max(1, (trade.sessions_held ?? 0) + remaining);
+  const warningAt = Math.max(1, Math.ceil(holdDays * 0.2));
+  return remaining <= warningAt ? 'text-amber-300' : 'text-gray-400';
 }
 
 function DirTag({ direction }: { direction: string }) {
diff --git a/tests/unit/test_paper_trade_service.py b/tests/unit/test_paper_trade_service.py
index 9d6bc26..4a63a8e 100644
--- a/tests/unit/test_paper_trade_service.py
+++ b/tests/unit/test_paper_trade_service.py
@@ -105,6 +105,50 @@ async def test_list_open_counts_post_entry_sessions_for_max_hold(session):
     assert row["sessions_remaining"] == 2
 
 
+async def test_list_open_exposes_past_max_hold_after_policy_is_shortened(session):
+    await svc.set_exit_policy(session, mode="time", hold_days=2)
+    ticker_id = await _seed(session, "OVERDUE", close=110.0)
+    trade = await svc.create_trade(
+        session,
+        1,
+        symbol="OVERDUE",
+        direction="long",
+        entry_price=100.0,
+        shares=10,
+        stop_loss=95.0,
+        target=120.0,
+    )
+    today = _today()
+    trade.opened_at = datetime.combine(
+        today - timedelta(days=5), datetime.min.time(), tzinfo=timezone.utc
+    )
+    session.add_all([
+        OHLCVRecord(
+            ticker_id=ticker_id,
+            date=today - timedelta(days=4),
+            open=101,
+            high=102,
+            low=100,
+            close=101,
+            volume=1,
+        ),
+        OHLCVRecord(
+            ticker_id=ticker_id,
+            date=today - timedelta(days=2),
+            open=102,
+            high=103,
+            low=101,
+            close=102,
+            volume=1,
+        ),
+    ])
+    await session.commit()
+
+    row = (await svc.list_trades(session, 1, status="open"))[0]
+    assert row["sessions_held"] == 3
+    assert row["sessions_remaining"] == -1
+
+
 async def test_list_open_omits_countdown_without_max_hold_policy(session):
     await svc.set_exit_policy(session, mode="trailing")
     await _seed(session, "NOHOLD", close=110.0)