Avg $ Position MAE (Average Maximum Adverse Excursion in Dollars)

Definition
The average maximum dollar amount a trade moved against you before being closed.

Formula
Avg $ Position MAE = (Sum of Position MAE on All Trades) / (Total Number of Trades)

Example
Let’s say you have the following MAE data for your trades:

• Trade 1: MAE of $100
• Trade 2: MAE of $70
• Trade 3: MAE of $150
• Trade 4: MAE of $120

Your Avg $ Position MAE would be: ($100 + $70 + $150 + $120) / 4 = $110

Key Points

• Risk Management: Helps you assess how large your typical drawdowns are. This information can be used to refine your stop-loss strategies.

Considerations

• MAE Calculation: Ensure you understand how position MAE is calculated within TraderSync.