diff --git a/crates/ml-alpha/cuda/rl_fused_reward_pipeline.cu b/crates/ml-alpha/cuda/rl_fused_reward_pipeline.cu
index 777528831..f1b034703 100644
--- a/crates/ml-alpha/cuda/rl_fused_reward_pipeline.cu
+++ b/crates/ml-alpha/cuda/rl_fused_reward_pipeline.cu
@@ -220,11 +220,21 @@ extern "C" __global__ void rl_fused_reward_pipeline(
         r -= entry_cost;
     }
 
-    // 2. Short-hold penalty: trade close with hold time below minimum.
-    if (done > 0.5f && (float)hold_time < min_hold) {
+    // 2. Short-hold penalty: ONLY on winning quick exits.
+    // Quick exit on a LOSER is GOOD (bail early on bad wave) — no penalty.
+    // Quick exit on a WINNER is BAD (bailed on a good wave) — penalize.
+    if (done > 0.5f && r > 0.0f && (float)hold_time < min_hold) {
         r *= penalty;
     }
 
+    // 2b. Quick-exit bonus on LOSING trades: reward fast loss-cutting.
+    // Reduces the loss magnitude proportional to how quickly the model
+    // exited. Surfer philosophy: bail early on closing-out waves.
+    if (done > 0.5f && r < 0.0f && (float)hold_time < min_hold) {
+        const float cut_bonus = 1.0f - 0.5f * ((min_hold - (float)hold_time) / min_hold);
+        r *= cut_bonus;  // reduces loss by up to 50% for immediate exits
+    }
+
     // 3. Long-ride bonus: profitable close amplified by hold time.
     if (done > 0.5f && r > 0.0f && hold_time > 0) {
         const float ride_mult = 1.0f + hold_bonus * sqrtf((float)hold_time);