I had never really looked at these values until now. What do you usually do with these values when you're designing a strategy? I know there's a book called MAE but I don't have it (yet) and don't know if it's worth buying.
I've heard one tip. Finding the max adverse excursion of your profitable trades and use that as a stop. Someone said it could improve your profits by 25%. It actually made mine worse.
Attached is a graph of Profit vs MFE of one of my systems. I haven't designed a stop/exit plan for this system (intraday). The results are from closing the position at 3:55 everyday. Looking at that graph, do any of you guys have an idea of possible exit techniques so I can capture the most profits as well as limiting the losers? Any stop/exit plan I try to design for it cause the profit factor/percent per trade/win ratio to go down. Ideally I'd like to get out of the market sooner but without sacrificing potential gains.
sorry, attachment here