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Your MFE/MAE widget says your efficiency is 75%, but when you divide what you kept by your MFE yourself, you get 60%. Nothing is wrong with your data: the widget averages each trade’s own percentage, and your hand math adds the dollars first.
Why it happens
- MFE (maximum favorable excursion) is the most a trade was up while it was open, in dollars for your position size.
- MAE (maximum adverse excursion) is the most it was down while it was open, also in dollars.
- Efficiency is what you kept divided by the trade’s MFE. The widget works this out for each trade, then averages the percentages, so every trade counts the same whatever its size.
An example
These numbers are illustrative: gross, no fees. Trade 1: you buy 100 shares at $20. Price dips to $19, runs up to $24, and you sell at $22.
- MFE: ($24 − $20) × 100 = +$400
- MAE: ($19 − $20) × 100 = −$100
- Kept: ($22 − $20) × 100 = +$200, so efficiency is 200 / 400 = 50%
Trade 2 only ran up $100 and you sold right at the top: you kept $100, so efficiency is 100 / 100 = 100%.
| Trade 1 | Trade 2 | Widget (average of the percentages) | By hand (add the dollars first) | |
|---|---|---|---|---|
| MFE | +$400 | +$100 | Avg +$250, Max +$400 | $500 |
| Kept | +$200 | +$100 | $300 | |
| Efficiency | 50% | 100% | (50% + 100%) / 2 = 75% | 300 / 500 = 60% |
Both are correct; they answer different questions. The widget tells you how well the average trade captured its run. Your hand math tells you how much of the total dollar run you kept, where bigger trades weigh more.
Good to know
- Efficiency uses your trade’s return in your Gross or Net setting, while MFE and MAE are gross, so Net shows a lower efficiency.
- On the MAE tab the same formula divides by the MAE, so it can go above 100%.
- The dashboard widget shows Avg, Max and Efficiency. The full report under Reports > Exit Stats > MFE/MAE shows every trade as a dot; hover one to see its excursion and P&L.
To find the report, follow How can I read my MFE and MAE report?
