Not really. The positions of all the units in the game are updated every fraction of a second. (Probably every screen frame update) When time compression is used this time period is obviously enlarged. With maximum time compression these update steps might be so large that even the relatively slow merchants jump deep into your detection range. Depending on their angle of approach they might even jump across sections of your detection area.
The realism setting has no influence on this.
Keep time compression moderate to get early warning of units on the horizon.
Also keep in mind that the hydrophone has the largest detection range, if you listen yourself when submerged.
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