MAE (maximum adverse excursion) is how far a trade moved against you before it resolved. MFE (maximum favourable excursion) is how far it moved in your favour. Together they reveal whether your stops and targets are placed well — something win rate and profit factor cannot show.
What MAE tells you
If your winners rarely dipped far into the red before working, your stops may be far wider than they need to be — you are risking more than necessary. If winners routinely nearly hit your stop first, your stops are about right. MAE is how you right-size risk.
What MFE tells you
If trades regularly ran far past your target before you got out, you are leaving money on the table — your targets are too close, or you are cutting winners early. MFE quantifies the profit you are giving away.
Turning it into changes
Together, MAE and MFE tell you concretely whether to tighten stops, widen targets, or trail rather than fix a target. It is one of the few analyses that translates directly into a rule change with a measurable payoff.
See your trade efficiency
NEXALIONE draws each trade and surfaces how far it ran for and against you, so you can see exactly where your stops and targets are costing you. Start free.