TRADING JOURNAL METRICS
How to Track MFE and MAE to Improve Your Exit Analysis
Learn how Maximum Favorable Excursion and Maximum Adverse Excursion describe what happened while a trade was openβand how to calculate both metrics in Excel or Google Sheets.
THE TWO EXTREMES
What do MFE and MAE mean in trading?
Maximum Favorable Excursion (MFE) is the largest unrealized gain a trade reached while it was open. Maximum Adverse Excursion (MAE) is the largest unrealized loss reached during the same period.
TradingView describes favorable excursion as a tradeβs maximum unrealized profit and adverse excursion as its maximum unrealized loss. These values are different from the final result because the exit may occur before or after the most favorable or adverse point.
How far did the trade move in your favor?
For a long trade, MFE uses the highest price reached while the position was open. For a short trade, it uses the lowest price.
How far did the trade move against you?
For a long trade, MAE uses the lowest price reached while the position was open. For a short trade, it uses the highest price.
MFE and MAE are useful because closing P&L hides the path taken by the trade. Two trades can both finish at +1R even though one moved smoothly to the target while the other first reached β0.9R and later recovered.
DIRECTION-AWARE CALCULATIONS
MFE and MAE formulas for long and short trades
Record the entry price, exit price, highest price and lowest price observed from entry through exit. Then apply the formula that matches the trade direction.
| Trade direction | MFE price move | MAE price move |
|---|---|---|
| Long | Highest Price β Entry Price | Entry Price β Lowest Price |
| Short | Entry Price β Lowest Price | Highest Price β Entry Price |
Convert the move to money
Excursion $ = Price Move Γ Quantity Γ Multiplier
Use a multiplier of 1 for ordinary shares. Futures, options and other contracts may require a contract-specific multiplier or tick value.
Normalize the move in R
Excursion R = Excursion per Unit Γ· Initial Risk per Unit
Initial risk per unit is normally the absolute distance between the planned entry and initial stop. Keep that original risk unchanged for the calculation.
Measure exit efficiency
Exit Efficiency = Realized Price Move Γ· MFE Price Move
A 60% result means the exit captured 60% of the maximum favorable movement observed during that trade. A losing exit can produce a negative value.
WORKED EXAMPLE
Example: calculating MFE and MAE for a long trade
Assume a trader buys 20 shares at $100 with an initial stop at $96. While the position is open, price reaches a high of $108 and a low of $97. The trader exits at $105.
The 62.5% figure is not automatically βgoodβ or βbad.β A rule-based trailing exit may intentionally return part of an open gain. Compare similar trades taken under the same setup instead of treating 100% capture as a realistic target.
EXCEL & GOOGLE SHEETS
How to build an MFE and MAE spreadsheet
Use one row per closed trade. Keep raw trade inputs separate from calculated metrics so you can audit the source values.
| Column | Field | Entry type |
|---|---|---|
| AβB | Trade ID, Direction | Manual input |
| CβF | Entry, Exit, Highest, Lowest | Manual input or verified import |
| GβI | Quantity, Multiplier, Initial Risk/Unit | Manual input |
| JβQ | MFE, MAE, result, efficiency and R values | Calculated |
With Direction in B2, Entry in C2, Exit in D2, Highest in E2, Lowest in F2, Quantity in G2, Multiplier in H2 and Initial Risk per Unit in I2, use:
=IF(B2="Long",MAX(0,E2-C2),MAX(0,C2-F2))=IF(B2="Long",MAX(0,C2-F2),MAX(0,E2-C2))=J2*G2*H2=K2*G2*H2=IF(B2="Long",D2-C2,C2-D2)=IFERROR(N2/J2,"")=IFERROR(J2/I2,"")=IFERROR(K2/I2,"")Format O as a percentage. The formulas work in current Excel and Google Sheets using English function names and comma separators; localized installations may use translated names or semicolons. If you store bar-by-bar prices on another tab, MAXIFS and MINIFS can return the highest and lowest values that match a Trade ID, provided the evaluated ranges have matching dimensions.
INTERACTIVE TOOL
MFE and MAE Calculator
Enter one completed trade. The example values are prefilled and can be replaced.
Results exclude commissions, fees, financing, slippage, currency conversion and tax. Confirm the multiplier and price convention for your instrument.
FROM NUMBERS TO QUESTIONS
How to use MFE and MAE in a trading review
Do not optimize an exit from one memorable trade. Group trades by a consistently defined setup, direction, instrument, timeframe and market condition, then examine the distribution rather than only the average.
Compare MFE with the final result
If many trades reach meaningful favorable movement but finish near zero or negative, review whether exits, stop adjustments or reversals are responsible.
Compare MAE across winners
If winning trades usually stay below a certain adverse range, investigate how current stop placement relates to that history. Do not convert an observed threshold directly into a new stop rule.
Review MFE in R
Normalizing by initial risk makes differently priced and differently sized trades easier to compare, provided initial risk was recorded consistently.
Segment before concluding
A breakout setup and a mean-reversion setup can have very different excursion patterns. Combining them may hide the behavior you need to see.
Useful charts for an excursion review
- MFE R vs. realized R: shows how much favorable movement was converted into a closed result.
- MAE R vs. realized R: shows the adverse path taken by winners and losers.
- Exit-efficiency distribution: avoids relying on a single average distorted by outliers.
- Median MFE and MAE by setup: compares like with like when each group has enough observations.
A useful review produces a question to test, not a promise. For example: βOver the next 30 valid breakout trades, what happens if the existing exit rule is followed without discretionary early exits?β Keep the rules fixed during the test and record exceptions.
DATA QUALITY
Common MFE and MAE tracking mistakes
Using highs and lows from outside the holding period
Only use prices observed after entry and before the position was fully closed. A full-day high that occurred before an intraday entry will overstate the excursion.
Reversing the formulas for short trades
For shorts, lower prices are favorable and higher prices are adverse. Use direction-aware formulas and test one obvious example of each direction.
Ignoring partial exits and scale-ins
A single entry and exit formula is only an approximation when size changes. Define whether you will use the initial entry, weighted average entry or lot-level records, and document the choice.
Mixing dollars, percentages and R-multiples
Label units clearly. A value of 2 could mean $2, 2%, two points or 2R; these are not interchangeable.
Treating the maximum possible exit as achievable
MFE is known only after the price path has occurred. Consistently capturing every tradeβs exact high or low is not a realistic assumption.
Choosing new stops from a small, selected sample
Small samples and cherry-picked market periods can create fragile conclusions. Include costs and adverse market periods, then test any rule change prospectively.
READY-MADE TRADING JOURNAL
Track excursions alongside your trading process
The Swing Trading Journal for Excel and Google Sheets is designed for multi-day trade analysis and includes MFE, MAE, R-multiple, position-sizing, hold-time and strategy reporting features.
- Standard and dark-mode options
- Excel and Google Sheets files
- Sample and blank versions
- No macros required
Review the product page before purchasing. Current requirements specify Microsoft 365 for Excel files or a Google account for Google Sheets; mobile editing may be limited.
Where MFE and MAE fit in your journal
Excursion metrics are one part of a complete review. Your journal should still preserve the original setup, entry reason, planned stop, position size, execution, fees and rule adherence. If you are building that foundation first, follow our guide to creating a trading journal in Excel.
Long-term holdings need a different structure. Our investment portfolio tracking guide explains accounts, transactions, holdings and portfolio-level performance.
FAQ
Frequently asked questions
What is the difference between MFE and MAE?
MFE is the largest unrealized gain reached while a trade was open. MAE is the largest unrealized loss reached during the same holding period. Both depend on trade direction.
Is MFE the same as profit?
No. MFE is the maximum favorable movement observed before exit. Realized profit or loss is based on the actual exit and may be much smallerβor negative after the trade reverses.
Should MAE include the stop price?
Use the actual highest or lowest price reached while the position was open. If the stop filled with slippage or after a gap, record the actual execution separately from the observed price excursion.
Can Excel calculate MFE and MAE automatically?
Yes, when the workbook has reliable entry, exit, direction, highest and lowest values for each trade. With bar-level data, conditional maximum and minimum formulas can help identify extremes within a defined trade period.
What is a good MFE or MAE?
There is no universal value. The useful comparison is among trades from the same clearly defined setup, market and timeframe, expressed in consistent units such as R.
Can MFE and MAE determine the best stop and target?
No. They can describe historical excursion patterns and support testing, but they cannot identify a guaranteed future stop or target. Liquidity, gaps, slippage, volatility and market regimes can change.
Sources and further reading
- TradingView: Strategy report excursion definitions
- TradingView: Adverse excursion calculation example
- Microsoft Support: MAXIFS function
- Microsoft Support: MINIFS function
- CME Group: Risk management and the trade plan
Sources accessed September 2026. Product features and software requirements should be confirmed on the linked product page.
