Looking Beyong PnL - MAE/MFE

[Tams 20]

Looking Beyong PnL - MAE/MFE

 

 

MAE - Maximum Adverse Excursion is the maximum draw down the trade had before the trade was closed.

 

MFE - Maximum Favorable Excursion is the maximum paper profit the trade had before the trade was closed.

[Tams 20]

Edited May 26, 2009 by Tams

[Tams 20]

[Tams 20]

[diablo272 10]

Ninja tells you what your MAE and MFE are for set time periods, and I know I've looked up their definitions at some point, but this thread has clarified the concept. Thanks!

[aaa 10]

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Following the Mandelbrot's Steps,

 

Prices are not smooth but rought and geometrically fractals

 

Summits and valleys are fractaled in a huge line

 

And the huge line is only a point in the universe

 

The question could be

 

From where is the observation point ?

 

1 mn ?

 

2 mn ?

 

1 day ?

 

....

 

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Edited October 28, 2009 by aaa