MAE/MFE

Here in this page we have MAE/MFE for

• All the trades

• Winners

• Losers

• breakevens

And they are based on

• R return

• Proximity to intial SL/TP

As i explained before in MFE/MAE

MAE stands for Maximum Adverse Excursion

MFE stands for Maximum Favorable Excursion.

• MAE (maximum drawdown of a position during a trade)

  • For Long trades: the lowest price during the trade

  • For short trades: the highest price during the trade

• MFE (maximum profit of a position during a trade)

  • For long trades: the highest price during the trade

  • For short trades: the lowest price during the trade

Example

Imagine we have taken this trade on bitcoin.

Our entry has been 16653 and our initial stoploss has been 16583 and we have exited the trade with the price of 16890.

After we have entered all the details in the beginning of the sheet and filled other parts we have something like this

Now we have to manually put the lowest and highest price during a trade. (you know the lowest and highest price during a trade after you closed the trade)

from the trade above our lowest price is 16606 and since this was a long and a win and we hit our target the highest price is our exit price.

Now we have this

• (autofill) R Return you got (to compare) This is the original return(R) that you got on your trade. you gonna compare this to other metrics and other statistics.

• (autofill) MFE base on R Since this was a long trade and we did hit our target and it was a win the MFE (maximum profit during a trade) is as the same as our original return.

• (autofill) MAE base on R if you say our stoploss is -1R the MAE that we got here is -0.67 means it has gone to that number and then it has reversed from there. again mae stands for maximum drawdown during a trade.

• (autofill) MFE based on %proximity to your initial SL&TP Again this was a win so our MFE is %100. by proximity to TP/SL it means how many % it has gone close to either of those.

• (autofill) MFE based on %proximity to your initial SL&TP here it means during the trade it has gone close 67% to our stoploss.

one different example

This was a bitcoin trade and the direction was short.

the Return that we have got on this trade is 1.61R

but the MFE shows us that it has gone to even 2.54R and we still closed it at 1.61R

and the MAE tells that the max drawdown has been -0.39R

Here our mfe %proximity is not %100 because we didn't close the trade at our original TP.

it says that the maximum upside have been 68% of the original TP that you have picked.

Lots of other examples can be made. but better for yourself to read more about them and try different situations.