Avg $ Position MFE (Average Maximum Favorable Excursion in Dollars)

Definition
The average maximum dollar amount a trade moved in your favor before being closed.

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

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

• Trade 1: MFE of $200
• Trade 2: MFE of $150
• Trade 3: MFE of $300
• Trade 4: MFE of $80

Your Avg $ Position MFE would be: ($200 + $150 + $300 + $80) / 4 = $182.50

Key Points

• Trailing Stop Evaluation: Helps assess if your trailing stops are optimal. If your average MFE is much higher than your average profit, it might indicate room to tighten your trailing stops.

Considerations

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